IT World Canada reported that Payments Canada is making progress to achieve the launch of a real-time payments platform they call Real-Time Rail (RTR). The payments modernization effort is targeting 2022 to launch, joining the already 50+ real-time networks in operation around the globe.
This article notes that Canada is in the process of selecting their technology partners and is beginning the building process. In addition to catching up with the rest of the major economies, Canada sees real time as an important capability to support the needs of fintech organizations.
There is also an opportunity to connect to one or both of the real-time networks in the U.S. to support the hundreds of billions of dollars in cross border, cross currency exchanges that occur each year. Cross border connections of real-time platforms are being accomplished in other parts of the world, but the level of volume and associated efficiencies that could be created between the U.S. and Canada would be incredible. Here’s an excerpt from the article:
Payments Canada is forging ahead with its efforts to modernize the core payments infrastructure so it can keep up with the arrival of fintech innovations in the Canadian market.
This modernization project began in mid-2015 with consultations with more than 100 organizations within the Canadian and global payments ecosystem. From that consultation came the vision of a payments system that is fast, flexible, and secure, promotes innovation and strengthens Canada’s competitive position. It includes addressing pain points such as cross-border payments, faster, easier payment options, and transaction transparency, while providing activity-based oversight, open and risk-based access, and a platform for innovation.
Canada will be joining over 54 other countries that currently have live real-time payment systems, many of whom have selected prime contractors such as DXC, Accenture, or IBM to manage an underlying real-time payment service such as Vocalink, Equensworldline, SWIFT, or ACI. Payments Canada is now in the process choosing its suppliers for RTR.
Overview by Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group