The long-awaited real-time payment system, Real-Time Rail (RTR), should be ready to launch in 2026 in partnership with IBM and CGI.
This timescale is based on the completion of the system's real-time clearing and settlement component through 2024, system testing throughout 2025 and final industry testing to be completed in 2026.
This announcement comes after the first stage of the process was completed in 2023, with Interac providing the system's exchange component that will have the ability to facilitate real-time payment message exchanges.
Interac has already proven popular in some industries, with betting expert Ciaran McEneaney exploring some online casinos that use networks like Interac to provide consumers with cheap and fast ways to cash out of accounts.
He explains that Interac is a Canadian "interbank payment system for processing debit card payments" that facilitates payments in under 30 minutes. It does this through electronic payments between Canadian banks that don't need traditional processing or require fees.
Real-Time Rail is anticipated to transform the Canadian economy by providing greater transparency among consumers and businesses. Safety and security are a priority for the modern consumer, especially when it comes to online payments, and this system aims to improve this for users.
Financial institutions are set to be one of the biggest beneficiaries of the news system, with the anticipated ability to experience real-time, seamless settlements that will promote more reactive financial decisions for businesses and consumers.
The system also aims to allow more data to travel, which will hopefully improve the potential for client service development. The tight regulations surrounding the new system will also seek to mitigate the risk of fraud and improve resiliency.
Payment service providers will be eligible to apply to participate in Real-Time Rail after amendments to the Canadian Payments Act, with the objective of creating more competition and expanded market opportunities.
As well as financial institutions and providers, the system also represents an exciting opportunity for developers who can access the Real-Time Rail API sandbox via the developer portal to create and explore against test data.
This opportunity will allow developers to experiment in a secure environment while providing advanced access into how the system will work when it is in practice. The open testing environment promotes innovation and transparency during the system's infancy.
Canadian governments may also benefit from the ability to operate efficiently on local and international levels with other countries that have already adopted real-time systems.
This increased efficiency strives to support smaller businesses by minimizing the time it takes to complete standard procedures.
Supply chains may also potentially benefit from speedier transactions, allowing production, transport and sales processes to move more freely.
In the event of an emergency, time is often a key factor in providing support to those who need it. The Real-Time Rail vies to facilitate faster payments of funds that can help natural disaster victims and communities.
Canadian businesses may also see great benefits from expedited payments, such as potential improvements in cash flow control and payment resiliency.
The objective of the Real-Time Rail system is to provide consumers with flexible payment options that provide more detailed statements, improved security and greater reliability.
Payments Canada has announced that Interac, CGI and IBM Canada will be involved in the process.
The latest time scale comes after initial plans were launched with 2019 in mind for its release before it was moved to a more realistic 2023. A third party was finally introduced to manage the delivery of the system, making the latest timescale a more reliable estimate.
It is now a matter of urgency that the Real-Time Rail is delivered on time so Canadian businesses can compete with international competitors. The fast-paced nature of online industries requires infrastructures that can support their needs.
Consumers will explore alternatives if their needs aren't being met, as is evident by the rise of crypto gambling. Casinos that accept alternatives to traditional payment methods offer customers who don't want the inconvenience and delay associated with international payments an alternative option.
Businesses that can offer quick payments, payouts and refunds have a competitive edge over competitors that make their customers wait. The digital era has created an expectation from consumers for immediate service from high-speed websites to fast delivery times, which is now expected across the board.
Canada's Real-Time Payment has the potential to be a valuable asset for the country and improve customer satisfaction when it arrives.
