CIBC, Scotiabank, Bank of Montreal and TD Canada Trust are starting to offer e-mail money transfers, which combine the speed and convenience of email with the security of online banking

Approximately five million Canadians will soon be able to send e-mail money transfers, while 15 million Canadians with e-mail addresses and an account at any financial institution in Canada will be able to receive transfers. This makes the Canadian service the first and largest bank-to-bank, person-to-person payment network of its kind in the world.

The service will be available to CIBC, Scotia, BMO and TD online banking customers over the next several weeks. Desjardins Group announced last week its intention to join the network.

CertaPay, the payment engine powering the service, is in negotiation with financial institutions representing the remaining banking industry. However, most banking customers with an e-mail address and a Canadian bank account are able to receive e-mail money transfers electronically through the CertaPay transfer Site.

To e-mail money, a user logs in to their bank account, online, specifies a recipient by entering an e-mail address, fills in the information regarding payment amount, account from which to withdraw the funds, security question and optional personal message, and presses send.

CertaPay generates the e-mail notification, which shows up in a recipient’s usual e-mail Inbox. The recipient gets an email with hyperlinks to the recipient’s bank of choice to deposit the funds. The sender’s account is debited when sending an e-mail money transfer, and the recipient is credited when collecting the funds, meaning the money is available instantly to the recipient.

“Over the next several weeks, Scotiabank, CIBC, Bank of Montreal and TD Canada Trust customers will start seeing the e-mail money transfer service in their online banking menu,” says Michael Ginsberg, CEO of CertaPay. “Canadians will be able to email money – directly from their bank accounts to anyone with an email address and a Canadian bank account.” Former Trimark Financial CEO, Brad Badeau, is also a CertaPay backer.