Payments Canada selects Mastercard’s Vocalink for RTP

By Robin Amlot

Payments Canada has chosen Mastercard’s Vocalink as the clearing and settlement solution provider for the country’s new real-time payments (RTP) system, the Real-Time Rail (RTR), following an extensive procurement process that included the Bank of Canada and the Department of Finance.

The partnership will draw on Mastercard’s expertise, and its next-generation real-time payments technology to provide the infrastructure and services to support clearing and settlement for the RTR. The clearing and settlement solution includes support for the ISO 20022 messaging standard, and will comply with the Bank of Canada risk management standards for prominent payment systems.

“Mastercard’s Vocalink business is a demonstrated leader in the real-time payments ecosystem and they will be a valuable partner for Payments Canada in the introduction and ongoing operation of Canada’s real-time payments system,” said Tracey Black, President and CEO of Payments Canada. “Providing Canadians and Canadian businesses with access to faster, data-rich payment options will enable innovation, support the long-term growth of the economy, and strengthen our global competitiveness.”

Regulated by the Bank of Canada, the RTR will allow Canadians to initiate payments and receive irrevocable funds in seconds, 24/7/365. Underpinned by the ISO 20022 data standard, the system will support payment information travelling with every payment and act as a platform for innovation, enabling the introduction of new and enhanced payment products and experiences. The RTR is expected to launch in 2022.

“As a company that operates real-time payments systems, across card and account rails around the world, we’ve seen first-hand how consumers, businesses, and governments benefit from the efficiency, transparency, and innovation they provide,” said Sasha Krstic, President of Mastercard in Canada.

Mastercard has proven experience in delivering real-time account-based payment platforms around the world. For example, in the US, The Clearing House’s RTP system is supported by Vocalink technology. And in the Nordics, Mastercard’s partnership with P27 will deliver the world’s first real-time cross border and multi-currency payments system.

Canada’s new real-time payments system will consist of two components: a clearing and settlement component provided by Mastercard; and an exchange component. The choice of exchange component is in the final stages of the vendor procurement process. A public announcement will be made in due course.

Payments Canada ensures that financial transactions in Canada are carried out safely and securely each day. The organisation underpins the Canadian financial system and economy by owning and operating Canada’s payment clearing and settlement infrastructure, including associated systems, bylaws, rules and standards. The value of payments cleared and settled in 2019 was over $55 trillion or $218 billion each business day. These encompass a wide range of payments made by Canadians and businesses involving inter-bank transactions, including those made with debit cards, pre-authorised debits, direct deposits, bill payments, wire payments and cheques.