In this episode of Pioneers in Payments, Donna Blum speaks with Shenela Tavarayan, Director of Product Development at Interac, about the evolution of payments in Canada, the rapid growth of digital wallets, and the importance of reducing friction throughout the payment experience.
As Canada’s national debit network, Interac has played a central role in the country’s payments ecosystem for decades. Shenela also discusses Interac’s role in money movement through Interac e-Transfer, which has enabled Canadians to send money directly to others using an email address or mobile phone number since 2002. More recently, Interac has expanded into digital wallets with Konek.
THE RISE OF LOCAL DIGITAL WALLETS
One of the most notable trends Shenela sees is the rapid growth of digital wallets. With consumers increasingly likely to leave home without a physical wallet than without their smartphone, digital wallets are expanding beyond payments to incorporate more of the items and experiences traditionally carried in a physical wallet.
Shenela highlights the growing distinction between global and local digital wallets. While global wallets provide broad functionality, local wallets can be designed specifically around the needs, preferences, and payment infrastructure of individual markets.
Examples include Konek in Canada, Vipps in Norway, Swish in Sweden, and MODO in Argentina. Shenela believes local wallets will continue to gain importance, particularly as countries place greater emphasis on financial and digital sovereignty. Over the next five years, she expects local wallets to play an increasingly important role in shaping the global payments landscape.
REDUCING FRICTION AND CREATING BETTER EXPERIENCES
For companies processing payments, Shenela believes one of the biggest opportunities is finding ways to make the customer experience easier and more seamless.
She points to the ability to move everyday items and experiences into a digital wallet as an example. Whether it is a payment card, event ticket, receipt, or other credential, bringing these elements into a digital environment can provide consumers with greater convenience, security, and accessibility while creating opportunities for businesses to build stronger customer loyalty.
THE ONGOING CHALLENGE OF FRAUD
As payment technology continues to evolve, so does fraud. Shenela notes that fraudsters are often among the earliest adopters of new payment products and technologies, making fraud prevention one of the industry’s biggest challenges.
At the same time, payment organizations are becoming more sophisticated in their ability to identify and stop fraudulent activity before it occurs. Shenela emphasizes the importance of “coopetition” where industry participants work together and share knowledge to stay ahead of increasingly sophisticated fraudsters.
SILVER BULLET PIECE OF ADVICE
Shenela’s advice to companies looking to succeed in payments is simple: reduce friction.
She encourages organizations to step back from their corporate perspective and look at payment experiences through the eyes of everyday consumers. By identifying the small challenges and frustrations people encounter and finding ways to eliminate them, companies can create meaningful improvements in the customer experience.
Connect with Shenela Tavarayan:
LinkedIn: /shenelatavarayan
About Interac:
Interac Corp. empowers Canadians to access, spend and send funds whenever and from wherever they choose. With nearly 300 financial institutions connected to its network, they enable payment and ID experiences that support Canadians’ accelerated use of safe and digital payments while prioritizing interoperability, security, privacy, and inclusivity. Interac is one of Canada’s leading and most trusted financial brands, with Canadians choosing Interac products an average of 18 million times a day to pay and exchange money. Learn more at https://interac.ca/.
About Konek:
Konek is a Canadian digital payment solution powered by Interac and backed by leading Canadian financial institutions. Designed specifically for the Canadian market, Konek brings multiple payment options together in one convenient online checkout experience, including the ability to pay directly from eligible bank accounts through Interac Direct. Learn more at https://konek.ca/.
