Toronto-Dominion Bank (TSE: TD) has entered the e-commerce arena with a new platform designed for small businesses, marking a significant move in the Canadian financial sector. This initiative, a first for a Canadian bank, is being launched in partnership with Austin-based software company BigCommerce (Nasdaq: BIGC).

The new platform aims to compete with established players like Shopify Inc. (NYSE: SHOP), offering small businesses the tools to create online stores and sell their products. This development represents a broader trend of traditional banks expanding into digital services, blurring the lines between conventional financial institutions and tech-focused service providers. 

Alec Morley, TD’s senior vice president of Canadian small business banking, acknowledged the need for the bank to evolve beyond traditional point-of-sale services to remain competitive. He highlighted Shopify as their primary competitor but expressed confidence in the sophistication of the store-building tools provided through BigCommerce.

“I think it’s good, too, just to have some more competition in this space, for e-commerce,” Morley said. “Shopify has done an amazing job, they’re absolutely leaders, globally.”

Shopify continues to dominate the e-commerce space, with its merchant solutions segment, including transaction fees and lending interest, generating $1.5 billion in revenue in the second quarter of this year alone.

Shopify co-founder and CEO Tobi Lutke meanwhile has shared his thoughts on the matter:

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