Following a selection process that included the Bank of Canada, Payments Canada will partner with Interac Corp. to serve as the exchange solution provider for the country’s Real-Time Rail (RTR). Expected to be introduced next year, the RTR will be operated by Payments Canada and regulated by the Bank of Canada, enabling Canadians to send and receive funds in seconds, anytime and any day throughout the year.
Tracey Black, president and CEO of Payments Canada, said in a press release on Tuesday (Mar. 2) that Interac offers complementary services and will help “support the launch and ongoing operations” of the RTR. Interac, which connects with close to 300 Canadian financial institutions (FIs), has “made significant investments in infrastructure and services” to bolster the rapid adoption of real-time payments.
“The Real-Time Rail 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,” Black said.
Interac’s exchange solution will enable RTR participants of Payments Canada to send and receive RTR payment messages using Interac’s existing infrastructure in Canada’s payment ecosystem. Mastercard’s Vocalink will provide clearing and settlement to enable real-time payments.
“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,” said Mark O’Connell, president and CEO of Interac Corp.
Payments Canada is a public purpose organization — similar to a private nonprofit — that owns and operates Canada’s payments systems, the Large Value Transfer System (LVTS) and the Automated Clearing Settlement System (ACSS).
Interac‘s eTransfer service facilitates real-time payments in Canada and is among the most popular means of instant payments.