Interac Corp. (Interac) has introduced KONEK, a new Canadian-made e-commerce payment solution designed to give merchants and consumers greater choice, trust, and control in how they pay online. Backed by Canada’s major financial institutions and launching nationally with Staples Canada as the first participating national retailer, KONEK represents a major evolution in the country’s digital payment landscape.
“KONEK is a new Canadian e-commerce payment solution that’s designed to give Canadians more choice and trust when they’re transacting online,” said Kris Zanuldin, Head of KONEK at Interac, in an interview with Retail Insider. “We saw an opportunity to bridge a gap in the market, where accessibility, convenience, and security weren’t being fully met.”
The platform arrives as retailers seek alternatives to costly payment networks and as Canadian consumers increasingly demand simpler, faster, and safer online transactions.
Bridging the Gap in Canadian Online Payments
Interac developed KONEK in collaboration with Canada’s leading financial institutions. The system operates as both an authentication entry point and a payment method, enabling customers to log in through their existing online banking credentials with their participating financial institution and securely complete purchases from a chequing, savings, credit, debit, or line-of-credit account, depending on merchant acceptance.
“KONEK was built to deliver trust, accessibility, and convenience,” said Zanuldin. “On the merchant side, there’s frustration with rising payment costs and increasing fraud, while consumers are becoming more conscious about privacy and security. We wanted to solve for both.”
He noted that trust and privacy rank among Canadians’ top priorities in digital commerce, particularly among younger generations. “Our research shows that over half of Gen Z consumers prefer pay-by-bank options if they’re available,” he said. “They want flexibility and confidence that their data is protected.”
Merchant Benefits: Lower Costs, Higher Conversions
For retailers, KONEK addresses long-standing pain points, including high transaction fees, complex integrations, and growing fraud exposure. Zanuldin explained that KONEK’s structure, developed in collaboration with financial institutions, helps reduce payment related costs while improving checkout conversion rates.
“For merchants, it’s about increasing revenue and reducing costs,” he said. “Many solutions focus on one or the other, but KONEK does both. We help maximize conversions while lowering the cost of payments.”
Based on data from the Baymard Institute the average large e-commerce site can gain up to a 35% increase in conversion rates through optimized checkout flow and design. KONEK’s integration gives consumers a streamlined checkout experience that is designed to reduce friction and minimize cart abandonment.
“Payment choice is critical,” added Zanuldin. “When customers can pay how they want, whether by chequing and savings accounts, debit, or credit, they’re less likely to abandon their carts. KONEK helps merchants close that gap.”
Reducing Fraud with Bank-Grade Security
Fraud prevention is another cornerstone of KONEK’s design. The platform integrates directly with financial institutions’ multi-layered fraud detection systems, incorporating tokenization, encryption, and real-time authentication.
“Fraud is an ongoing battle,” said Zanuldin. “The good news is that with KONEK, merchants gain access to some of the best fraud detection and prevention systems in the country, powered by the financial institutions themselves.”
Retailers using KONEK also benefit from full fraud liability shift, meaning they are not held responsible if a customer authenticates through KONEK and later reports fraudulent activity. “That’s a huge advantage for merchants,” Zanuldin explained. “It helps reduce risk and protect their bottom line.”
Seamless Integration for Merchants
To make adoption as frictionless as possible, KONEK was developed as a modern API-based platform that works across operating systems and networks. Its first payment processor integration partner is Moneris, allowing retailers to integrate KONEK directly through existing acquirer relationships.
“We wanted integration to be modern, easy, and operationally simple,” said Zanuldin. “Partnering with existing acquirers, ensures that retailers don’t face new reporting or settlement challenges. It all fits seamlessly into their existing systems.”
This approach reflects the long history of Interac and its collaboration with the Canadian financial ecosystem. “Our goal is to make life easier for merchants, not more complicated,” he added.
Simplified Checkout for Consumers
For consumers, the KONEK experience is designed to be fast, secure, and intuitive. At checkout, customers simply select the KONEK button, choose their participating financial institution, and authenticate using their online banking credentials. Once enrolled, they can use passkeys login — such as Face ID or Touch ID –for one-click checkouts.
“After authentication, customers see their full range of payment options,” Zanuldin said. “That’s what makes KONEK special. You can pay directly from your chequing or savings account, credit, debit, or line of credit, depending on merchant acceptance, all within one experience.”
The system automatically fills in billing and shipping details from the user’s banking profile, which can be edited before purchase, helping speed up transactions while maintaining accuracy.
“Our vision is simple: pay who you want, how you want, easily,” Zanuldin said. “That’s what we’ve built KONEK to do.”
A Made-in-Canada Solution for a Diverse Market
KONEK’s Canadian origins are central to its identity. Developed and operated domestically, the platform reflects both the regulatory environment and the diverse consumer base unique to Canada.
“Canada is a diverse nation, and payment preferences vary,” said Zanuldin. “KONEK was built to reflect that. It’s about choice, inclusivity, and flexibility.”
He added that Canadian businesses benefit from a payments system that understands the local regulatory and financial landscape. “It’s important for a payment solution to recognize what it means to operate in Canada. KONEK does exactly that.”
Trust remains a defining factor. “Canadians have a deep level of trust in Interac and in our financial institutions,” Zanuldin said. “By aligning KONEK with those institutions, retailers inherit that trust. It’s a powerful differentiator.”
Staples Canada Leads as First National Retail Partner
The first national merchant to adopt KONEK is Staples Canada, which offers the payment option on Staples.ca and Bureauengros.com The rollout represents a milestone for both Interac and Canadian retail, as Staples showcases the potential of the platform.
“They are the first retailer to demonstrate what we mean by a more convenient, trustworthy, Canadian-built payment experience,” Zanuldin confirmed.
He described Staples Canada as an ideal early partner. “They’re a well-established national brand with strong e-commerce operations, and they share our vision for improving the online customer journey. It’s a great fit.”
Future Expansion and Long-Term Vision
As KONEK scales across Canada, Interac is already focused on expanding its functionality and reach. The company sees the platform as a foundation for future e-commerce payment innovation, supporting account-to-account transactions, recurring payments, and embedded financial experiences.
“Canada deserves a better payment service, one that’s accessible, trustworthy, and built for our market,” said Zanuldin. “We’re on a multi-year journey to make that a reality.”
He also emphasized the potential for KONEK to drive growth in Canada’s e-commerce ecosystem. “Digital payments are still evolving here,” he said. “As more commerce shifts online, Canadian merchants need a homegrown option that helps them compete and lowers their costs. That’s what KONEK offers.”
Merchants who are interested in learning more about KONEK can visit KONEK.ca
This feature was developed in partnership between Retail Insider and KONEK to highlight innovation within the Canadian retail industry.
