Payments Canada has selected Interac as the exchange solution provider for Canada’s real-time payments system, the Real-Time Rail (RTR), following a selection process that included participation from the Bank of Canada.
The exchange solution provided by Interac will allow Payments Canada members participating in the RTR to send and receive RTR payment messages.
The partnership will leverage Interac’s existing infrastructure in Canada’s payment ecosystem and its existing connectivity to nearly 300 financial institutions.
To enable the settlement of RTR payments in real-time, the exchange solution will interface with the clearing and settlement solution being provided by Mastercard’s Vocalink.
Operated by Payments Canada and regulated by the Bank of Canada, the RTR will allow Canadians to initiate payments and receive irrevocable funds in seconds, 24/7/365.
Leveraging the ISO 20022 data standard, the system will support payment information travelling with every payment.
The RTR is expected to launch in 2022.
According to Tracey Black, president and CEO of Payments Canada, Interac is a well-suited partner to support the launch and ongoing operations of Canada’s new real-time payments system as they have made significant investments in infrastructure and services.
Black comments: “The RTR will be the foundation for faster, data-rich payments and act as a platform for innovation. Participants in the payment system will be able to connect and develop new and exciting ways for Canadians to pay for goods and services, transfer money and better compete nationally and internationally.”
Mark O’Connell, president and CEO of Interac Corp, says: “Working with Payments Canada to support the build of the Real-Time Rail represents a significant opportunity to enable consumers and businesses to take full advantage of digital payment solutions and foster increased innovation and efficiency.”
Interac will leverage the technology behind the Interac e-Transfer service, currently used by millions of Canadians every day, in building the exchange solution for the RTR.
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