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Canada is moving closer to launching an instant payments system, but its Real-Time Rail (RTR) remains at least seven years behind schedule, thanks to repeated delays and changes in delivery partners.

Payments Canada has  that it is now “halfway through” the technical build of the RTR, having made “substantial progress” on the new payments system since Q4 2024.

Jude Pinto, chief delivery officer at Payments Canada, said the association and its delivery partners, CGI, IBM and Interac, have made “steady traction” on the technical build of the RTR, and are now closer to the end than the beginning.

The technical build covers the installation of advanced hardware in data centres, he said, including servers, storage systems and advanced networking equipment.

It also covers software development, including coding for the real-time clearing and settlement system.

In Q4 2024, the delivery partners also made “significant” progress towards developing an integrated fraud solution for the RTR.

“We have successfully reached consensus with members and participants on a fraud strategy and on high-level requirements for an effective fraud mitigation system,” said Pinto.

“With alignment on these fundamental elements, we have now commenced the foundational centralised fraud solution build for the RTR.”

Pinto said the delivery team continues to gain insights from other jurisdictions that have already launched real-time payments systems.

Taking these learnings into account, Payments Canada is developing a “made in Canada” approach to the RTR with a centralised fraud solution, Pinto added.

In addition, the association continues to share technical and operational requirements with Payments Canada members, in an effort to support them in designing risk management processes to integrate with the RTR.

In 2025, Payments Canada and the delivery partners will continue the technical build, and will also prepare for the testing phase.

This will involve selecting testing approaches and tools, and identifying test participants from among Payments Canada’s current members.

Payments Canada membership expansion

Following amendments to the Canadian Payments (CP) Act that were enacted in June 2024, Payments Canada is now open to a much wider range of potential members.

In November 2024, as part of the implementing amendments to the CP Act, the Bank of Canada introduced a new licensing requirement for all payment service providers (PSPs).

Once registered with the Bank of Canada, PSPs will be eligible to join Payments Canada as members, and to take part in testing and participating in the RTR.

“Payments Canada is a champion of this expanded eligibility, which enhances financial inclusivity by allowing a broader range of users to benefit from real-time payment processing, while complying with regulatory requirements,” said Pinto.

Seven years behind schedule

As covered by ���ĺ�������, the RTR was initially scheduled to launch in 2019, but has been beset by repeated delays and changes in delivery partners.

In April 2024, after bringing IBM and CGI on board, Payments Canada announced that it expected industry testing of the RTR to be completed by the end of 2026.

Ron Morrow, executive director of payments, supervision and oversight at Bank of Canada, said at the time that the central bank is “disappointed” by Canada’s lack of progress towards real-time payments.

“I think it’s fair to say that we’re all disappointed this initiative hasn’t yet been launched,” he said.

“We’re behind other jurisdictions in rolling out real-time payment capability, but the good news is that, despite the delays, we now have a clear way forward.”

Once the RTR goes live, Morrow said, it will open up a “world of possibilities”, including a potential link-up of instant payment systems between the US and Canada.