Payments Canada Launches First Phase of Real-Time Rail System After Years of Delays
Payments Canada has launched the first phase of its Real-Time Rail (RTR) system, enabling near-instant payments 24/7. Eight institutions joined initially, with major banks set to participate in later phases as Canada aims to include all financial institutions by mid-2027.
Payments Canada has launched the first phase of its Real-Time Rail (RTR) system, a national instant payment infrastructure that enables money transfers to be sent almost instantly, 24 hours a day, 365 days a year. The launch follows years of delays; the process began in 2015 with an initial scheduled launch date of 2019.
Ottawa announced the RTR launch in the federal budget as part of efforts to grow the economy and reduce reliance on the United States. Currently, more than 80 per cent of Canadian payments destined for Europe are routed through the U.S. Prime Minister Mark Carney has prioritized the security of Canada’s payments system alongside defence and critical minerals due to geopolitical tensions.
Canada is the last G7 country to launch a real-time rail system, while peers such as the U.S., Britain, India, and Brazil already have instant payments systems. Unlike other G7 countries, Canada’s RTR system launches with fraud safeguards at the outset to address increased vulnerability to financial crime.
The RTR was built by Payments Canada in partnership with Interac Corp., IBM, CGI, and Deloitte Canada. Through the system, payments include data that facilitates tracking fund flows. The C.D. Howe Institute estimated the RTR would contribute more than $16-billion in economic gains.
Eight institutions joined the initial phase, including Wealthsimple Financial Corp., Questrade Financial Group Inc., Peoples Trust Co., Koho Financial Inc., and Bank of America. Fintechs can access payments systems directly through the RTR at lower costs, bypassing traditional bank partnerships.
Major Canadian banks are not involved in the first phase but will join in the second and third phases. Participants will be added to the RTR in three phases, with the goal of including every Canadian financial institution by mid-2027.