Payments Canada has said it is renewing its efforts to implement a faster payment system for the country but says it will not be operational before 2026.

The announcement follows several delays by Payments Canada, an organisation which underpins the Canadian financial system and economy by owning and operating the country’s payment clearing and settlement infrastructure, including associated systems, by-laws, rules and standards.

It said that when launched, Real-Time Rail (RTR) will allow payments to be sent and received as well as cleared and settled in real-time.

Payments Canada went on to say that RTR is a complex, multi-year infrastructure project which involved building an RTR exchange component, which was completed in June last year.

Additionally, the RTR needs a real-time clearing and settlement component.

Payments Canada aims to start testing the new system in 2025 to 2026.

Once completed, the organisation said the RTR will give Canadians more control over their finances with faster payments and pave the way for new payment products leading to more choice and innovation.

“Over the past year, we have reviewed our path forward through engagement and collaboration from our members, regulators and key stakeholders,” said Jude Pinto, co-chief executive (interim) and chief delivery officer at Payments Canada. “Our collective focus is on building a sustainable real-time payment system that will support long-term payment innovation and the continued advancement of our economy, Canada’s international economic competitiveness and provide value and benefit to Canadian consumers and businesses.”

The announcement follows the news that Mastercard has partnered with Canadian FinTech VOPay in a bid to speed up and simplify both domestic and cross-border payments in Canada. The partnership will offer a choice of payment rails and capabilities for transfers both domestically and to over 180 countries.

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