After years of waffling on the matter of open banking, Canada has officially debuted the launch of a “Real-Time Rail” system.
Payments Canada says that the new national system will transform day-to-day payments for Canadian businesses and consumers by enabling instant speed and settlement, real-time cash-flow visibility, and data-rich messaging through existing channels.
The launch of a RTR marks a milestone in modernizing the critical infrastructure that underpins Canada’s economy and future growth, according to François-Philippe Champagne, Minister of Finance and National Revenue.
“A stronger, more productive economy relies on modern financial infrastructure that can match our ambition,” Champagne remarked. “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.”
The C.D. Howe Institute projects that the RTR will generate $14 billion in cost savings from factors such as lower processing costs and reduced float.
The RTR is also expected to generate more than $16B in economic gains.
Susan Hawkins, chief executive officer of Payments Canada, believes that 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,” she says. “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 RTR is owned and operated by Payments Canada, and was built in collaboration with delivery partners CGI, Deloitte Canada, IBM Canada, and Interac.
Tiff Macklem, Governor of the Bank of Canada, says that the Bank “will oversee the system so that it operates safely and reliably while ensuring Canadians can benefit from innovations in financial services.”
“The Real-Time Rail is an important step in modernizing Canada’s payment infrastructure and ensuring it keeps pace with Canadians’ evolving needs,” he stated.
Initially active system participants include names well-known to Fintech.ca readers, including Wealthsimple, KOHO, and Digital Commerce Bank.
“When Canada embraces new technology, innovation and competition follow, and consumers benefit,” says Wealthsimple CEO Mike Katchen. “We’re proud to be among the first institutions to join the RTR and bring this technology to the millions of Canadians who trust us with their money.”
The launch “reflects years of work by teams across Payments Canada, Interac, and our delivery partners to design, build and test national payment infrastructure,” according to John Collinson, Head of RTR Technology and Operations for Interac.
Interac will function as the RTR’s Technical Operator and first Fraud Services Provider, according to CEO Jeremy Wilmot, who says the company is “proud to support Payments Canada and the wider payment ecosystem in achieving this historic launch milestone.”
“We bring more than 40 years of experience to these roles, and our commitment is clear: to operate always-on infrastructure Canadians can trust,” Wilmot stated. “As Interac e-Transfer payments begin to clear and settle on the RTR, we will put this world-class infrastructure to work for consumers and businesses.”
Anuj Dhall, Group Head of Technology and Operations for Interac, says the role as Technical Operator of the RTR “is both a privilege and a profound responsibility.”
“We have drawn on our unique resources and the deep expertise we’ve built over decades of operating Canada’s mission critical payment systems to make this ground-breaking launch possible for Canadians,” Dhall stated. “We remain committed to delivering dependable service and helping Canadians benefit from truly real-time payment experiences.”
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