Canada launches real-time payment system promising instant transfers

OTTAWA — Canada officially launched its long-awaited Real-Time Rail payment system Monday, introducing new national infrastructure designed to allow businesses and consumers to transfer money between participating financial institutions within seconds, around the clock.

Developed and operated by Payments Canada, the system represents a major step toward modernizing the country’s financial infrastructure and reducing reliance on slower traditional payment-processing methods.

The new network enables participating financial institutions, credit unions and payment service providers to exchange, clear and settle transactions immediately, 24 hours a day, including weekends and holidays.

Initial participants include Wealthsimple, KOHO, Questbank, Peoples Trust Company, Paramount Commerce, Digital Commerce Bank and Bank of America, among others.

Canada’s major banks are expected to join progressively, with Payments Canada projecting that the system will be available to more than 90 per cent of Canadians within its first year.

Officials say the infrastructure could improve business cash flow, accelerate payroll processing and provide consumers with faster access to transferred funds.

The system incorporates centralized fraud-prevention measures, including confirmation of payee information, transaction risk scoring and coordinated fraud reporting.

According to estimates cited by Payments Canada, the platform could generate billions of dollars in economic benefits through lower processing costs, greater efficiency and improved productivity.

The Bank of Canada has also designated the Real-Time Rail as a prominent payment system, bringing it under formal regulatory oversight.

Although the infrastructure is now operational, the availability of individual payment services will depend on financial institutions introducing compatible products and completing their integration with the network.