Canadians View Pay by Bank as a More Secure Payment Option
Online payment fraud is a growing concern for both consumers and businesses in Canada. According to a 2024 study from Payments Canada, 13% of Canadians have experienced payment fraud in the past six months, with unauthorised transactions (38%) and impersonator scams (34%) being the most common.
Fraud isn’t just a consumer problem—20% of Canadian businesses reported experiencing payment fraud in the same period. While 63% of businesses feel confident in their fraud prevention strategies, fraud rates have remained steady, highlighting the need for stronger security solutions.
Credit Cards Are a Common Target for Fraud
Traditional payment methods, especially credit cards, remain a prime target for fraudsters. As credit card transactions require users to input sensitive information online, they are vulnerable to data breaches and unauthorised use. This is particularly risky in high-growth industries such as iGaming, sports betting, crypto, and online marketplaces, where large transaction volumes attract fraudsters looking for weaknesses.
The Security Advantage of Pay by Bank Payments
With security concerns increasing, many Canadians are turning to pay by bank solutions—a safer alternative that allows users to pay directly from their bank accounts without exposing sensitive card details.
A Payments Canada study found that 32% of Canadians believe pay by bank solutions offer greater security compared to other payment methods. Here’s why:
Direct Bank Authentication: Transactions are verified through the bank’s mobile app or online banking, reducing the risk of account takeover.
No Card Information Shared: Eliminating card numbers from transactions minimises the chances of data breaches.
Paramount Commerce: A Reliable Pay by Bank Partner for High-Growth Industries
For businesses operating in high-growth industries, having a secure, fraud-resistant payment solution is crucial. Paramount Commerce, a leading provider of pay by bank solutions in Canada, offers a robust risk management system backed by machine learning to detect and prevent fraud in real time.
Machine Learning-Supported Risk Management: Paramount Commerce uses advanced machine learning algorithms to analyse transactions and detect anomalies before fraud can occur.
Multi-Bank Network Security: With direct partnerships with multiple financial institutions, transactions are processed with bank-grade security.
Compliance and Regulatory Strength: Paramount ensures its solutions meet strict regulatory and compliance standards, protecting businesses from fraud-related liabilities.
As fraud continues to challenge both consumers and businesses, the shift toward pay by bank payments is accelerating. With enhanced security, reduced fraud risk, and a seamless user experience, pay by bank is quickly becoming the preferred choice in industries where trust and security matter most.
For businesses looking to adopt a more secure, reliable payment solution, Paramount Commerce provides a proven platform backed by machine learning-powered risk management.
Want to learn more about how Paramount Commerce can help your business reduce fraud and improve payment security? Get in touch today.
