Canada outlines plans to change country’s payments infrastructure
These improvements will create a platform for innovation, enabling new and exciting ways for Canadians to pay for goods and services, transfer money and exchange data about their payments.
Supporting innovation at the customer level will be a faster, more flexible and secure payments infrastructure that puts Canada at the leading edge of payments.
The following set of changes will be implemented over the next four to five years, with notable enhancements in place as early as 2017. This work extends beyond Payments Canada, requiring significant investment by key stakeholders in governments, the financial services industry and users of payment systems.
To meet regulatory requirements and ensure safety and soundness, all enhancements will be designed to meet global standards for risk management.
In order to deliver benefits to Canadians as soon as possible, changes will be made to existing payment systems to help financial institutions exchange payments faster and more frequently, giving individuals and businesses more immediate access to funds.
Payments and money transfers will be faster and more convenient with a new real-time payments capability that will allow industry participants to innovate, resulting in new and modern ways for customers to pay.
The implementation of the global messaging standard ISO 20022 will make electronic payments more accommodating and convenient for businesses and support the move away from paper-based invoicing and cheques. Canadian businesses need to ready themselves for ISO 20022 adoption to reap the benefits, which include enhanced payment information and streamlined cross-border payments.
To strengthen Canada's competitive position and provide a safe and secure foundation that supports a dynamic payments environment, a new core clearing and settlement system will be implemented and operated by Payments Canada.
The legal framework underpinning Canada's payment clearing and settlement systems will be modernized to facilitate the changes and support future innovation and improvements. ■