Canadian digital payment processor Interac announced last week it will use Microsoft Azure as its cloud capabilities provider.

The move will allow Interac to scale and secure its processes in a Canadian payments market that saw online transfers grow by 48% and e-commerce payments grow by 20% in 2020, according to payment clearing and settlement company Payments Canada. Combined digital payments represented 79% of all Canadian transactions last year.

“As part of Interac’s technology transformation strategy, we needed a trusted, secure and reliable cloud solution that aligned with our business and technology objectives,” Peter Sweers, Interac’s chief technology and operations officer, told Bank Automation News. “Key criteria in selecting a cloud provider included simplifying the support structure, automating where possible, zero downtime maintenance, always-on availability and enabling Interac to be cloud ready for future objectives.

“A key component of our digital transformation approach is implementing a secure and compliant cloud platform that positions Interac for future growth and meets the demands of the quickly evolving digital payments landscape,” he added.

Canadian cash and check transactions declined by 17% and 26%, respectively in 2020, while the use of contactless payment methods — such as digital wallets and wearables — grew 13%, according to Payments Canada. Interac’s selection of Azure reflects its need for infrastructure to match demand from Canadian banks, businesses and consumers.

Spurred by growing appeals for contactless instant payments during the COVID-19 pandemic, Interac was seeking a cloud partner that could assist with its digital strategies while also providing flexibility and reliability to its growing userbase. Interac will look to Microsoft Azures’ hybrid cloud model to enhance its payment innovation, automation and security, with a focus on real-time digital transactions and improved anti-fraud practices.

“Interac is making strategic investments in technology to enable faster data-rich payments, with increased scalability and resilience, enhanced security and fraud controls, and better redundancy,” Sweers said. “Part of this approach includes leveraging Microsoft’s cloud capabilities and security investments. The ultimate goal is achieving real-time payments.”

Interac is one of the largest digital payment processors in the Canadian market with a monthly userbase of 24.2 million on its Interac Debit platform, according to its website. In 2020, the company processed 5.6 million debit transactions, and since April 2020 has handled nearly 1 billion e-transfer transactions.

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