Personal Finance

Is Zelle unavailable in Canada? Here are some alternatives

Piyush Singh

07.03.25

Read time 7 minutes

A popular option in the US for making quick, hassle-free money transfers, Zelle lets you send cash instantly to friends, family, or businesses, even if they use a different bank. However, Zelle is unavailable in Canada because it requires a US bank account and phone number to register.

Luckily, there are great alternatives in Canada that match Zelle’s convenience and offer more flexibility, such as Wise, which provides low-cost international transfers at the mid-market exchange rate with fees starting at 0.48%¹.

We will look into
What does Zelle offer in the US? What alternatives does Canada have for Zelle? Interac e-Transfer Wise KOHO Skrill PayPal Which app is the best Zelle alternative in Canada?

What does Zelle offer in the US?

Zelle is a popular option when you want to make quick and easy money transfers within the US. It's built into many major banking apps, so sending and receiving money is simple and usually instant. But while it's great for domestic payments, it falls short for anyone needing to send money internationally².

Key features	Key considerations
Fast transfers	Need a US based phone number and bank account to apply
No fees - same currency transfers	International transfers aren’t possible
No need to share banking info	Cannot be used with international accounts such as Wise
Zelle payments are accepted by most US banks	Transfers cannot be cancelled³

What alternatives does Canada have for Zelle?

Interac e-Transfer

While Zelle is a popular way to send money within the US, Canada has its own go-to peer-to-peer (P2P) payment system—Interac e-Transfer⁴. Used by millions of Canadians, Interac e-Transfer allows fast and secure money transfers between bank accounts, making it one of the closest equivalents to Zelle.

Widely accepted by most Canadian banks and credit unions, Interac e-Transfer only requires an email address or phone number to send or receive money. Interac has also collaborated with Western Union and Mastercard⁵, meaning you can easily send money around the world hassle-free.

Interac e-Transfer at a glance:

Key features	Key considerations
Fast transfers—typically within minutes	Some banks charge fees for sending transfers, depending on the account type
No need to share banking details—just an email or phone number	Transaction limits apply, with daily, weekly, and monthly caps
Supported by most Canadian banks and credit unions	Mainly used for domestic transfers in CAD
Can be used for personal and business transactions	Requires both sender and recipient to have a Canadian bank account
Auto-deposit feature allows funds to be received instantly without security questions	Some transfers may take longer if flagged for security purposes

Interac e-Transfer is excellent for domestic transfers in Canada, but for international payments or more flexibility, other options like Wise may be a better fit

Wise

If you’re looking for a payment option that works both locally and internationally, Wise is a great alternative. Unlike Zelle, which is limited to US bank accounts, and Interac e-Transfer, which only works within Canada, Wise allows you to send and receive money in over 40 currencies across 160+ countries. Plus, if both the sender and recipient have a Wise account, same-currency transfers are completely free, making it a no-brainer for businesses, freelancers, and expats who need to move money efficiently.

With transparent pricing and a mid-market exchange rate, Wise ensures you get more for your money when sending funds internationally. Plus, with features like auto-conversion and multi-currency account balances, you can hold, convert, and spend money like a local wherever you go.

Wise at a glance:

Key features	Key considerations
Free same-currency transfers between Wise accounts	Currency conversion fees apply when sending to a different currency (starting from 0.48%¹)
Hold 40+ currencies and send money to 160+ countries	Wise accounts must be verified before sending large amounts
Multi-currency account with local account details in over 10 currencies	Some ATM withdrawals may incur fees if limits are exceeded
Free Wise card available for spending and withdrawals abroad	Not all currencies support instant transfers—some may take several business days⁶
Mid-market exchange rate with no hidden fees	Physical card delivery may take up to 14 days⁷

Ratings on:

Play store: 4.7 stars out of 1.18m reviews⁸
Trustpilot Canada: 4.3 stars out of 248,106 reviews⁹

The true cost of sending CAD to USD

KOHO

If you’re looking for a secure, feature-packed prepaid card that also offers cashback and competitive foreign exchange perks, KOHO is another alternative to Zelle.

While KOHO doesn’t offer direct peer-to-peer bank transfers like Zelle, it allows you to conveniently spend, save, and send money through its prepaid Mastercard. Plus, with the Extra and Everything plans, you avoid foreign transaction fees, making it handy for frequent travellers or online shoppers who want to make international purchases.

KOHO accounts include built-in budgeting tools and cash-back rewards of up to 2% on eligible purchases, and users can earn up to 4% interest on their balance, depending on their plan. KOHO also offers credit-building services for Extra and Everything plan users who want to start their credit journey or build or improve their credit.

Key features	Key considerations
Prepaid Mastercard for secure spending inCanada and abroad	Monthly fees apply for premium plans ($4–$14.75 per month)
No foreign transaction fees on Extra and Everything plans	Essential plan users pay a 1.5% foreign transaction fee¹²
One free international ATM withdrawal per month (Extra and Everything plans)	KOHO is a prepaid card, so you’ll need to top up before spending
Earn up to 2% cashback on eligible purchases and up to 4% interest on your balance	No direct peer-to-peer bank transfers like Zelle
Credit-building features available for premium users	International ATM withdrawals incur 2-3 CAD out of network fees after the first free withdrawal¹³

Ratings on:

Play store: 4.5 stars out of 69k reviews¹⁴
Trustpilot Canada: 1.4 stars out of 376 reviews¹⁵

Skrill

Skrill is a digital wallet that offers a range of financial services, including online payments, money transfers, and even a prepaid Mastercard for spending. Unlike Zelle, which is limited to domestic bank-to-bank transfers in the US, Skrill lets you send money internationally, making it another potential alternative for those looking to transfer funds across borders.

You can fund your Skrill account in several ways—bank transfers, debit/credit cards, or Skrill-to-Skrill transfers. However, the fees can vary significantly depending on the payment method and whether currency conversion is required. Users can upgrade to True Skriller status for lower charges and additional benefits.

Skrill’s prepaid Mastercard is great for spending online or in stores, especially if you regularly deal with multiple currencies. But watch out for foreign exchange fees and currency markups—they can add up quickly.

Key features	Key considerations
Prepaid Skrill Mastercard available for in-store and online spending	Exchange rate markup up to 4.99% applies to international transfers¹⁶
International transfers available via bank transfer and debit and credit card	Sending money between Skrill accounts incurs a 2.99% fee (min. €0.50)¹⁶
Skrill-to-Skrill transfers allow users to send money easily	Card has a €10 application fee and a €10 annual fee while ATM withdrawals incur a 1.75% fee¹⁷
No fees for receiving money¹⁶	Foreign exchange fee of 3.99% applies when converting currency¹⁸
Zero fees for domestic and international transfers via bank transfer (in the same currency)¹⁶	Inactivity fee of €5 per month after 6 months of no login or transaction¹⁹

Ratings on:

Play store: 4 stars out of 211K reviews²⁰
Trustpilot Canada: 2.5 stars out of 24,207 reviews²¹

PayPal

A household name when it comes to digital payments, PayPal makes sending money, shopping online, and even handling international transfers a breeze. Unlike Zelle, which only works for domestic bank-to-bank transfers in the US, PayPal lets you send money across borders, making it a go-to option for international payments.

One of PayPal’s main advantages is that personal transactions within Canada are free when funded by a linked bank account or PayPal balance. However, using a credit or debit card for transfers comes with additional fees, and international transfers also incur costs, with fees varying based on the recipient’s location and payment method.

PayPal also applies a 4% exchange rate markup when converting currencies²², which can make it expensive for international transactions compared to alternatives like Wise, which uses the mid-market exchange rate. Additionally, while standard local withdrawals to a linked bank account are free, instant transfers to a debit card come with a 1.75% fee, capped at 25 CAD per transaction²².

Key features	Key considerations
Free domestic transfers in Canada when funded by a bank account or PayPal balance	2.90% + fixed fee for card transfers
International transfers available to multiple countries	International transfer fees start at 2.99 CAD for U.S. and Europe, and 4.99 CAD for other regions
Accepted by millions of online merchants worldwide	Currency conversion markup of 4% applies to foreign transactions²²
Standard local bank withdrawals are free	Instant withdrawals incur a 1.75% fee (capped at 25 CAD per transaction)²²
Secure transactions with buyer protection	Inactivity fee of 20 CAD if the account is dormant for 12 months

Ratings on:

Play store: 4.1 stars out of 3.37m reviews²³
Trustpilot Canada: 1.3 out of 32,334 reviews²⁴

Which app is the best Zelle alternative in Canada?

When it comes to replacing Zelle in Canada, the best alternative depends on your needs. If you’re looking for a simple, bank-supported option for domestic transfers, Interac e-Transfer is widely used and built into most Canadian banking apps. However, if you need to send money internationally, Wise stands out for its low-cost, mid-market exchange rate and global reach.

For those who want an all-in-one digital wallet with spending and cashback perks, KOHO offers a prepaid Mastercard with no foreign transaction fees on premium plans. Meanwhile, Skrill and PayPal provide flexible transfer options, but their fees and exchange rate markups can add up.

Ultimately, if you need the cheapest way to send money abroad, Wise could be the cheapest option, while Interac e-Transfer is the most convenient choice for everyday domestic payments.

Finding the Right Zelle Alternative in Canada

While Zelle is a convenient option in the US, it’s not available in Canada—but that doesn’t mean you’re out of luck. There are several strong alternatives if you need to send money domestically or internationally. Interac e-Transfer is the go-to for quick and easy Canadian transfers, while Wise offers the best value for international payments with its low fees and mid-market exchange rate. If you prefer a digital wallet, KOHO, Skrill, and PayPal each offer unique benefits to consider.

The best choice comes down to how and where you need to send money. Compare the options, check the fees, and pick the best fit for your needs.

Sources:

Sources verified on 7 March 2025

*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.

We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.