Lecture Notes: Real-time Rail Payment System (RTR) in Canada

Introduction

• Speaker: Jude Pinto, Chief Delivery Officer at Payments Canada
• Topic: Real-time payment system (RTR) in Canada
• Purpose: Discuss the RTR system, its necessity, and benefits to Canadians

What is RTR?

• Full Name: Real-time Rail Payment System
• Nature: New national payments infrastructure in Canada
• Current Context:
  • Canada is highly banked
  • Existing real-time transactions through Interac e-Transfer
• RTR Launch:
  • Conversion and uplift of real-time clearing and settlement for e-Transfer

Unique Features of RTR

• Fraud Solution: Integrated from day one
• Transaction Characteristics:
  • Irrevocable
  • Certain in terms of clearing and settlement
• Availability: 24/7/365
• Data-Rich Transactions:
  • Designed for future innovative use cases
  • Aims to enhance consumer and business experiences

Benefits of Real-time Payments

National Level Benefits

• Economic Growth: Real-time payments drive economic growth globally
• Liquidity and Credit Management:
  • Efficient management among participants
  • Well-managed and regulated ecosystem
• Risk Management: For citizens and businesses

Innovation and Participation

• Innovation: Stimulated by various use cases of real-time transactions
• Participation:
  • Financial Institutions (FIs) and new participants enhance payment solutions
  • Better competitive choice and improved consumer/business experience

Lessons Learned from Other Jurisdictions

• Adoption:
  • Importance to businesses and consumers
  • Enablement by FIs
• Resilience:
  • Design for long-term use cases and volumes
  • Canadian approach involves conversion of existing solutions
• Fraud Concerns:
  • Significant issue in payments
  • 1 in 10 consumers and 1 in 5 businesses recently experienced fraud

Current Progress and Future Outlook

• Regulatory Support:
  • Changes to Canadian Payments Act
  • Wider future participation
• Member Support and Collaboration:
  • Strong collaboration across program levels
• Momentum with Team Canada:
  • Delivery partnership motivated to implement RTR

Conclusion

• Excitement and Engagement:
  • Strong momentum and execution within mandate
  • Successful start to the program
• Call to Action:
  • Encouragement to follow the video series for updates on RTR and related systems

[Music] [End]