Payments Canada, along with its partners Interac, CGI and IBM, has made “substantial progress” on its real-time payment system Real-Time Rail (RTR), and provided an update on developing an integrated fraud solution.
According to Payments Canada, it is now halfway through the technical build of RTR, which comprises both the installation of advanced hardware in data centres – including servers, storage systems and advanced networking equipment – and the development of sophisticated software, which includes coding for the real-time clearing and settlement system.
In a quarterly update on RTR published on its website, Jude Pinto, chief delivery officer at Payments Canada, said: “Payments Canada and its delivery partners have made steady traction in this build component of the programme. In fact, we’re more than halfway through that.
“It includes the exchange component on a common infrastructure and it includes readiness of e-transfer to be able to use the new clearing and settlement system.”
During the first quarter of 2025, the technical build will continue, while preparations for the next phase of work – testing – will also get underway, including finalising its test strategy, selecting test tools, determining approaches and identifying test participants.
Payments Canada will also be increasing direct member engagement to prepare members for their participation in industry testing.
Payments Canada also revealed that over the past quarter, there had been “significant momentum” in developing an integrated fraud solution.
Pinto said: “Now, we’ve also made important traction on fraud. That includes getting to consensus on high-level requirements from our members and participants. Also on fraud, we have started the foundational build, so that it is ready in time for testing later on this year.”
It is now working concurrently with member participants, sharing technical and operational requirements and supporting them in designing their risk management processes to integrate with the new fraud capabilities.
Payments Canada and its delivery partners have been gaining insights from other jurisdictions into how their respective real-time payments systems were launched, which will inform a “made for Canada” approach to the RTR with a centralised fraud service.
In its quarterly update, Payments Canada confirmed that the Bank of Canada had completed the registration of payment service providers (PSPs) in November 2024, under the Retail Payment Activities Act, as part of implementing amendments to the Canadian Payments Act.
The updates to the Act, which received Royal Asset in June last year, will expand membership eligibility to PSPs, credit union locals and certain clearing houses.
Further reading: Payments Canada study reveals impact of payment fraud on Canadians
