Bringing data-rich, high-value payments to Canada: Lynx fully adopts the ISO 20022 standard

Payments Canada’s Director of High Value Payment Systems Operations, Mike Hoganson, reflects on Canada's journey toward data-rich, high-value payments and looks ahead at what's next for ISO 20022 in Canada.

Payments Canada has been leading efforts to introduce the ISO 20022 financial messaging standard in Canada, in support of our vision for world-class payments. On 22 November 2025, we achieved a pivotal milestone in this endeavour by fully transitioning Lynx, Canada’s high-value payment system, from MT messages to MX messages (the ISO 20022 standard).

How we got here: Lynx’s journey to ISO 20022-enabled payments

For decades, the MT messaging format was the foundational standard for Canada's high-value payment system, supporting the legacy Large Value Transfer System (LVTS) in line with Swift’s standards. As technology advanced, consumer expectations shifted. Canadians wanted their payments to be smarter, simpler, and more efficient. So began our journey toward bringing richer data to Canada’s high-value payments through the implementation of the ISO 20022 standard.

As part of Payments Canada’s modernisation initiatives, we announced that Lynx, Canada’s new high-value payment system, would not only replace the LVTS, but also introduce ISO 20022-enabled payments.

A year ahead of Lynx’s first release, our teams developed and released ISO 20022 messages for the system. This allowed our member Lynx participants to prepare their existing applications well in advance so they could leverage the value of ISO 20022 as early as possible. The ISO 20022 standard was officially introduced with the second release of Lynx in March 2023, maintaining interoperability for cross-border payments and enabling data-rich, high-value payments in Canada. As a result of our extensive preparations for release two, Lynx was able to settle over half of its payment volume in MX messages at go-live.

Coexisting: supporting the transition from MT to MX

From there, Lynx began operating in a co-existence period, concurrently processing both MT and MX payment messages to support Lynx participants in a smooth transition to the new messaging format. To ensure they were prepared for Swift’s global deadline of 22 November 2025, industry alignment and education were key.

In collaboration with Lynx participants, Payments Canada developed extensive migration plans, including coordinated testing and target adoption thresholds and dates. Our teams also updated Payments Canada’s existing rules and operating procedures to reflect the decommissioning of the legacy MT messages. Once participants felt ready to migrate, we provided dedicated support with the extensive testing required prior to exchanging the messages in the Lynx production environment.

At the same time, our teams engaged our member participants on the plans and preparations while showcasing the many benefits of ISO 20022 through practical use cases. We created an online ISO 20022 resource centre to make this information, along with user guidelines and up-to-date message specifications, easily accessible. Through these efforts, Lynx participants were kept well-informed, supporting them in boosting their subject matter expertise to understand the use cases applicable to their institution.

Operational resilience and flexibility were paramount as participants began implementation, and our coordinated, phased approach to migration ensured that we could achieve our ambitious volume targets with minimal risk. Lynx participants were highly engaged through member working groups, committees, and countless one-on-one meetings, and their open communication and collaboration set us up for a seamless migration.

By October 2025, a month ahead of the co-existence deadline, we had reached another milestone: over 98% of payment messages processed through Lynx were MX. This was a testament to the effort and commitment demonstrated by our Lynx participants to meet this significant deadline and swiftly enable the benefits of rich data for Canadians.

A significant leap forward: Lynx fully adopts MX messages

All of these efforts culminated in the ‘end of coexistence’ of MT and MX payment messages on Lynx and its successful full adoption of ISO 20022 in November 2025. This achievement is one shared with jurisdictions around the globe, as ISO 20022 is now the standard language for payments worldwide.

Moving to MX payment messages means that high-value payments can carry significantly more information, establishing a foundation for future payment innovation by bringing the benefits of rich data to Canada.

This success is a testament to the powerful collaboration among the international payment community, Lynx participants, Swift, our technology providers IBM and Nexi, regulators, and stakeholders. It’s also another important step in modernising payments in Canada.

More data travelling with payments means more efficient payment experiences. This paves the way for smoother cross-border exchanges, enhanced opportunities for payment automation, less reliance on older technologies, and more innovative products and services for Canadian consumers and businesses. Financial institutions, for example, can leverage more structured data to process transactions faster and more accurately, resulting in a better customer experience. Businesses sending and receiving high-value payments can experience streamlined reconciliation by integrating transaction details, like invoices and purchase orders, into their accounting systems. Richer data can enable improved forecasting models and straight-through processing of payment-related services, while also reducing reliance on paper-based payment options for governments. For consumers, more detailed information on their high-value transactions can make it easier to manage personal finances.

By aligning with this worldwide standard, we are strengthening our global interoperability and advancing Canada’s competitiveness by enabling payment efficiencies that create greater value in the Canadian economy.

What’s next for ISO 20022 in Canada?

With over 70 countries having already adopted the ISO 20022 standard, the benefits of data-rich payments are expected to increase as it is embraced by more jurisdictions worldwide. In order to fully realise these benefits, end-to-end ISO 20022 adoption and continued industry alignment are crucial.

As the standard evolves, Payments Canada will continue to provide updates to the Lynx MX messages to accommodate new formats and functionalities. Our commitment to providing industry training, education, and operational support will help enable the consistent and effective use of MX messages across the Canadian payment ecosystem. Additionally, at launch, Canada’s forthcoming Real-Time Rail (RTR) will also use the ISO 20022 standard, harnessing the power of data-rich payments in real time.

As we close the chapter on MT messages, a new era of easier, smarter, and safer high-value payments begins. Through ISO 20022, we are establishing a foundation for future payment innovation, bringing richer data and increased efficiency to Canada's financial system.

 

About the author

Mike Hoganson is the Director of High Value Payment Systems Operations at Payments Canada. He has over 25 years of experience in payments, clearing, and settlement. He is responsible for the operation of Lynx, Canada’s high-value payment system, which was implemented in 2021. His team also supports the operation of network and directory services. Over his career, he has been involved in many domestic and global payments initiatives, including the introduction of ISO 20022.

 

About Payments Canada

Payments Canada makes payments easier, smarter, and safer for Canadians by providing secure and resilient infrastructure for clearing and settling payments between financial institutions. As a public-purpose organisation, we own and operate Canada's national payment systems: Lynx, the Automated Clearing Settlement System (ACSS), and the upcoming Real-Time Rail (RTR). We also develop the bylaws, rules, and standards that support these systems.