Payments Canada picks new clearing and settlement solution provider

Payments Canada has selected Mastercard’s Vocalink as the clearing and settlement solution provider for the country’s new real-time payments system, the Real-Time Rail (RTR).

Expected to launch in 2022, RTR will support payment information travelling with payments and act as a platform for innovation, enabling the introduction of new payment products and experiences.

While RTR is operated by Payments Canada, it is underpinned by the ISO 20022 data standard, and regulated by the Bank of Canada.

The new partnership will draw on Mastercard’s payments technology to provide the infrastructure and services to support the clearing and settlement for the RTR.

According to Payments Canada, the clearing and settlement solution will meet all of its requirements, including support for the ISO 20022 messaging standard, and will comply with the Bank of Canada risk management standards for prominent payment systems.

Canada’s new real-time payments system will consist of two components including a clearing and settlement component provided by Mastercard; and an exchange component.

Payments Canada is in the final stages of the vendor procurement process for the exchange component and has revealed a public announcement will be made in due course.

Tracey Black, president and CEO of Payments Canada, said: “Mastercard’s Vocalink business is a demonstrated leader in the real-time payments ecosystem and they will be a valuable partner for Payments Canada in the introduction and ongoing operation of Canada’s real-time payments system.”

Black continued: “Providing Canadians and Canadian businesses with access to faster, data-rich payment options will enable innovation, support the long-term growth of the economy, and strengthen our global competitiveness.”

Sasha Krstic, president of Mastercard in Canada, commented: “As a company that operates real-time payments systems, across card and account rails around the world, we’ve seen first-hand how consumers, businesses, and governments benefit from the efficiency, transparency, and innovation they provide.”