Canada’s Real-Time Rail Program Resumes With Renewed Momentum

Payments Canada has announced a path forward for the Real-Time Rail (RTR), Canada’s fastest payment system. The new system will allow payments to be sent and received as well as cleared and settled in real-time 24/7, 365 days a year.

The real-time movement of money enabled by the Real-Time Rail will give Canadians more control over their finances by allowing payments to be made in seconds not days and providing greater confidence that payments have been finalized. It will also provide the foundation for new payment products and services to be introduced by members and innovators leading to greater payment choice and convenience for all Canadians. The Real-Time Rail will reflect Payments Canada’s commitment to provide a safe and secure foundation for participants to innovate upon, including a centralized fraud utility service.

The Real-Time Rail is a complex, large-scale, multi-year infrastructure program that includes two key technical components: the build of the Real-Time Rail exchange component provided by Interac, which was completed in June 2023 and will allow for the exchange of payment messages in real-time. The second piece is the build of the real-time clearing and settlement component.

“Over the past year, we have reviewed our path forward through engagement and collaboration from our members, regulators and key stakeholders. Our collective focus is on building a sustainable real-time payment system that will support long-term payment innovation and the continued advancement of our economy, Canada’s international economic competitiveness and provide value and benefit to Canadian consumers and businesses,” said Jude Pinto, Co-CEO (Interim) and Chief Delivery Officer, Payments Canada. “The last component of the RTR, the clearing and settlement build, will continue through 2024 prior to initiating testing of the new system through 2025 and into industry testing in 2026. We know the ecosystem is anticipating the launch of the RTR, and we will have further details to share in the coming months.”

The path forward for the RTR includes new partners IBM Canada and CGI, along with Interac, to support the delivery and operation of the RTR. As part of Payments Canada’s larger Modernization initiative, IBM Canada was the lead technology partner for the successful implementation and operation of Lynx, Canada’s high-value payment system, a key system underpinning the Canadian economy. The launch of Lynx represented a significant collaborative effort between Payments Canada, its member participants, regulators and technology partners.

“We are working in close collaboration and alignment with the payment ecosystem to deliver, as a team, the RTR for the benefit of Canadians,” said Pinto. “We are excited to bring the RTR program to fruition for Canada.”

Payments Canada and its members, stakeholders, regulators and vendor partners — CGI, IBM, and Interac who will together provide the applications, infrastructure and operations — will deliver a real-time payment system that meets the needs of Canadians.

“The Real-Time Rail project (RTR) is an important piece of national infrastructure which will support many services and use cases we are just beginning to imagine, and I look forward to seeing the innovation unfold. Equitable Bank is pleased that this announcement gives more clarity on the path forward for the RTR. It is time Canadians are able to benefit from a modern payments system that will support people and businesses in improving their everyday financial lives.” – Andrew Moor, President and Chief Executive Officer Equitable Bank and EQ Bank

“As chair of Payments Canada’s Member Advisory Council, I look forward to the continued industry collaboration toward delivery of the final pillar of the Real-Time Rail (RTR). By using the ISO 20022 financial messaging standard, the RTR will allow more data to travel with each payment, creating opportunities for participants to offer smarter and faster services to the end user community.” – Dougal Middleton, Member Advisory Council Chair and Vice President Global Payments Platforms & Client Solutions Scotiabank

“Establishing a payment system for Canadians to instantaneously move money is critical for the Canadian economy. IBM is proud to continue our successful partnership with Payments Canada, bringing strong technology integration and operations expertise along with our IBM Payments Centre capabilities. We look forward to the implementation and operations of the RTR to advance the payment experience for consumers, financial institutions and businesses in Canada”. – Craig Eaket, Managing Partner IBM Canada

“To boost competition in Canada’s financial sector, Canada needs a real-time, always-on, data-rich payment system that has fair and level pricing for all participants, regardless of their size. More competition in financial services is a critical part of the broader agenda to make Canada a more affordable and productive place to live. We’re encouraged by Payments Canada and its members committing to launching the Real-Time Rail, catching Canada up to its G20 peers.” – Alex Vronces, Executive Director Fintechs Canada