Payments Canada publishes detailed future view of Canadian payments

Wednesday 27 December 2017 10:54 CET | News

Payments Canada has issued an in-depth view of the target end state for payment system modernization in Canada.

The white paper includes the infrastructure, rules and standards that will benefit Canadians and businesses from coast-to-coast. The publication provides a detailed view of Canada’s Modernization program, including descriptions of core systems and their fundamental support structures, such as risk and regulatory requirements, access and settlement models, and technology platforms.

The target state is underpinned by three new systems, which have the ISO 20022 payment messaging standard, which enables the flow of more data with payments:

1. Lynx - Lynx will replace the current Large Value Transfer System, a high value payment system that facilitates secure real-time payments with transaction finality and supports settlement of other payment networks and financial market infrastructures. Lynx will comply with the Bank of Canada’s risk-management standards for Systemically Important Payment Systems. This will provide a safe and secure foundation that supports a dynamic payments environment.

2. Retail clearing with enhanced batch payments (or SOE) - A new system will replace the existing Automated Clearing Settlement System and U.S. Bulk Exchange. The new system will clear retail batch payments and comply with the Bank of Canada’s risk management standards for Prominent Payment Systems. It will also enable faster and more convenient automated funds transfers - a payment type typically associated with payroll and bill payments.

3. Real-time Rail - This new, always-on payments infrastructure will support immediate payments. The real-time infrastructure will enable fast, convenient payments and funds transfers and will be a platform for future innovation, where participants in the payment system can connect and develop new and exciting ways for Canadians to pay for goods and services and transfer money.

The publication is called Modernization Target State and it is open for public consultation until February 23, 2018.

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Keywords: Payments Canada, online payments, mobile payments, ecommerce, digital transactions, cash, digital wallets, Canada, payments
Categories: Payments & Commerce | Payments General
Countries: World
This article is part of category

Payments & Commerce