They were all told that this is due to the savings that are necessary to reduce paper, energy, and probably manpower costs at the government mailing department. While a mailing may cost 88 c, direct deposit costs probably around 13 or so cents ( http://www.seniorlivingmag.com/articles/2013/04/canadian-government-is-phasing-out-printed-cheques). Millions can be saved, so the government says.
But, to a principle of point, they are also giving direct deposit only to banks, credit unions, also.
Where a person can understand the expediency of direct deposit ( Yours truly goes that way too), because most companies will only pay through that method.