Canada’s Real-Time Rail | Collaborating for the benefit of the payment ecosystem

Jude Pinto, Chief Delivery Officer at Payments Canada, highlights Canada’s progress in developing a real-time payment system to further instant A2A payments.

Account-to-account (A2A) payments are gaining momentum around the world, and Canada is no exception. For instance, Payments Canada’s research shows that over a quarter of Canadians (around 29%) would use Pay by Bank, an emerging A2A payment method, and 32% believe Pay by Bank offers greater security than alternatives.

Globally, the use of A2A payments has been driven by the steady implementation of national real-time payment (RTP) systems. When integrated with RTP systems, A2A payments can be processed instantly, allowing for quick, secure, and cost-effective transactions.

The Real-Time Rail (RTR) will be Canada’s new national RTP system, facilitating instant A2A payments through the real-time exchange – and real-time clearing and settlement of funds. With the RTR, consumers and businesses will send and receive irrevocable payments instantly, which will then clear and settle between their financial institutions in real time, 24/7, 365 days a year, something that is not yet available in a single payment system in Canada.

Demand for the RTR is evident, as 60% of Canadians indicate wanting to send or receive payments in real time. The instant, irrevocable movement of money enabled by the RTR will give Canadians more control over their finances and greater confidence that payments have been finalised.

The RTR is also set to benefit the broader Canadian economy, adding an estimated USD 2.2 billion (CAD 3 billion) in efficiency gains over the first five years.

As a platform for innovation, the RTR will provide the foundation for new payment products and services, leading to greater payment efficiency, choice, and convenience.

When it comes to RTPs, Canada’s starting point is different from most jurisdictions that have faster payment systems. The majority of those countries have real-time exchange, not real-time settlement. For years, Canada has had fast exchange via existing money movement systems. With the launch of the RTR, Canada will have both real-time exchange and real-time clearing and settlement in a single system.

Canada benefits from insights gained by other jurisdictions that faced challenges when launching their RTP systems. Almost all initiated faster payment programmes without a centralised fraud service, resulting in a significant rise in fraud. Canada aims to be among the first countries to launch an RTP system with a centralised fraud service in operation from day one. The RTR’s centralised fraud service will include central fraud analytics, a central risk list, central fraud reporting, and confirmation of payee capabilities.

Payments Canada, together with our delivery partners and the payment ecosystem, has moved into the testing phase of the program, as planned. Testing will occur throughout 2025 and 2026, paving the way for a robust and reliable system that meets Canadians’ needs.

Our member financial institutions have been integral to the RTR programme from the start and remain deeply engaged as we enter the testing phase. Their partnership and participation, along with our delivery partners and industry stakeholders, are vital to our collaborative approach as we shift focus from technical development to testing.

Payments Canada is working in close collaboration with the payment ecosystem to deliver the RTR in a coordinated and unified effort for the benefit of Canadians and all who call Canada home. Visit our website for regular updates on the progress of the RTR.

 

This editorial piece was first published in The Paypers' Account-to-Account Payments Report 2025, which features insights into global trends, key players, partnerships, and the next phase of the A2A evolution. Access the full report to understand where the A2A payments ecosystem stands today and what’s next.

 

About the author

Jude Pinto is Payments Canada's Chief Delivery Officer, strategically leading large-scale delivery programmes to support a payment ecosystem that is resilient, inclusive, and enables fair competition as the foundation of Canada’s thriving economy. Bringing more than 30 years of experience in senior- and executive-level leadership positions in the financial services sector, Jude works with business and technology experts, members, stakeholders, and regulators to lead the delivery of Canada’s Real-Time Rail.

 

About Payments Canada

Payments Canada underpins the Canadian financial system and economy by owning and operating Canada’s payment clearing and settlement infrastructure, including associated systems, bylaws, rules, and standards. The Canadian economy depends on the exchange of billions of dollars each day. Payments Canada ensures that these financial transactions are carried out safely and securely. We are a public-purpose, non-profit organisation funded by our members, and we operate under a Board of Directors.