PayFacto Adds Interac Konek to Online Checkout, Expanding Pay-by-Bank Options for Canadian Merchants

The payment gateway’s API v2.0 documentation introduces Konek as a checkout option, allowing eligible customers to authenticate through participating financial institutions and pay without entering card details.

PayFacto has added support for Interac Konek to its API v2.0 online checkout solution, giving merchants another way to accept digital payments from Canadian customers.

The integration allows merchants using PayFacto’s Secure Hosted Checkout to present Konek alongside traditional card payment options. Customers can select Konek, authenticate through their participating financial institution, and authorize a purchase using an eligible payment method.

The capability introduces another route for merchants to support account-based payments at checkout. It also reflects growing interest in alternatives to conventional card transactions across Canada’s digital payments market.

PayFacto’s documentation describes the integration and its checkout flow. However, it does not disclose a commercial partnership agreement, transaction volumes, or a specific merchant rollout schedule.

How Interac Konek Works at PayFacto Checkout

Interac Konek is a digital payment solution developed by Interac Corp. It brings eligible payment options from participating financial institutions into one online checkout experience.

When a shopper selects Konek, the payment process directs them to their participating bank’s authentication environment. They sign in and provide the required consent before selecting an eligible payment method.

The customer then authorizes the transaction. PayFacto processes the payment and returns the confirmed result to the merchant.

This approach differs from a conventional card checkout. Customers do not need to enter their card number, expiry date, and CVV directly into the merchant’s checkout page when using the bank account payment option.

Konek supports several payment choices, depending on the financial institution and merchant. These include eligible chequing and savings accounts, as well as connected debit and credit cards.

Direct payments from eligible bank accounts are powered by Interac Direct, which is available exclusively through Konek.

What the Integration Means for Merchants

PayFacto is making Konek available through its API v2.0 Secure Hosted Checkout solution.

This is important because merchants do not need to treat Konek as an entirely separate payment product. Instead, it appears as another payment choice within the supported checkout experience.

The integration gives participating merchants an additional way to serve customers who prefer to pay through their banking relationships.

It may also help businesses accommodate different payment preferences. Some customers prefer cards, while others may choose an eligible bank account for online purchases.

For merchants, offering more payment choices can support a more flexible checkout experience. However, actual availability depends on merchant configuration, participating financial institutions, and the payment methods supported for each transaction.

PayFacto’s documentation does not provide specific figures for expected conversion improvements, processing costs, or fraud reduction.

Interac Konek Connects Canada’s Major Banks

Konek was developed by Interac in collaboration with major Canadian financial institutions.

Its participating banking network includes:

• Bank of Montreal (BMO)
• National Bank of Canada
• Royal Bank of Canada (RBC)
• Scotiabank
• Toronto-Dominion Bank (TD)

This network gives eligible customers access to Konek through their existing banking relationships.

The first time customers use Konek, they select their financial institution, authenticate through online banking, and provide the required consent. They can then create a Konek profile and select their preferred payment method.

For subsequent purchases, saved preferences can simplify the checkout process.

Konek also uses tokenization to protect payment information. Merchants do not receive the customer’s underlying account or card numbers. Instead, the platform shares the information needed to complete the transaction.

With customer consent, relevant details such as a name, phone number, and shipping address can also be passed to support order fulfillment.

Pay-by-Bank Gains Ground in Canada’s E-Commerce Market

The PayFacto integration arrives as Canadian payment providers expand the range of digital checkout options available to merchants.

Card payments remain an important part of online commerce. However, account-based payments offer another route for consumers to authorize purchases directly through eligible banking accounts.

Interac has been developing Konek as a broader digital commerce solution. In November 2025, it announced Staples Canada as the first national merchant for the service.

More recently, in September 2026, Interac announced that Global Payments would enable Konek across its Canadian merchant network. The rollout was planned to expand through API and hosted checkout capabilities.

These developments show how payment processors and technology providers are extending Konek’s reach across merchant channels.

PayFacto’s API documentation adds another integration route to this evolving ecosystem.

The wider opportunity is to make account-based payments easier for merchants to offer and consumers to use. However, adoption will depend on participating banks, merchant acceptance, and the checkout experience.

What Happens Next for PayFacto and Konek?

The addition of Interac Konek to PayFacto’s API v2.0 gives merchants another option for accepting online payments.

For customers, it offers a way to authenticate through participating banks and choose eligible payment methods without manually entering card details for every purchase.

For PayFacto, the integration expands its supported digital wallet and payment-method capabilities.

The next important indicators will be merchant adoption, the range of supported payment options, and how widely the integration becomes available across Canadian online commerce.

As account-based payments develop, integrations like this could help make bank-connected checkout a more familiar part of the e-commerce experience.

Account-Based PaymentsAPI integrationCanadian fintechDigital Walletse-commerce paymentsHosted CheckoutInterac DirectInterac KonekOnline PaymentsPay by BankPayFactoPayment Gateway