Payments Canada has introduced the Real-Time Rail (RTR), a national payment system that enables financial institutions, credit unions, and payment service providers to clear and settle transactions in real time.
In a statement, the public-purpose organisation described the launch of RTR as a “major milestone” in the modernisation of infrastructure that “underpins Canada’s economy and future growth”.
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The RTR operates “24 hours a day, every day of the year”, enabling instant fund transfers and data-rich messaging through existing banking and payment channels.
Payments Canada president and CEO Susan E. Hawkins said: “The launch of Canada’s Real-Time Rail marks the beginning of a new era for payments in our country.
“As a national asset that’s designed specifically for our country, the RTR gives the payment ecosystem a modern foundation to build on. By collectively leveraging this rail, our ecosystem will unleash its full potential, enabling our members to build capabilities that drive innovation, resilience and growth for businesses and consumers across the nation.”
The infrastructure, built on the ISO 20022 messaging standard, will be owned and operated by Payments Canada. CGI, Deloitte Canada, IBM Canada, and Interac collaborated on the system’s development.
The initial group of active RTR participants comprises Bank of America, Digital Commerce Bank, DoBusiness.com, KOHO, Paramount Commerce, Peoples Trust Company, Questbank, and Wealthsimple.
The system also includes centralised fraud services to mitigate settlement risks.
Required safeguards at launch include Confirmation of Payee verification for consumer accounts, a transaction safety score, a repository of fraud risks and indicators, and a fraud reporting and intelligence platform.
Canadian Minister of Finance and National Revenue François-Philippe Champagne said: “A stronger, more productive economy relies on modern financial infrastructure that can match our ambition.
“The launch of Canada’s Real-Time Rail lays the foundation for a more dynamic and competitive digital economy, driving innovation, expanding choice and creating new opportunities for Canadians while positioning our country for long-term growth.”
Payments Canada plans to add the country’s major commercial banks and eligible deposit-taking entities over the coming months. The organisation expects that the service will be available to “more than nine in 10 Canadians” within its first year of operation.
