The changes are aimed at creating a platform for innovation, enabling new ways for Canadians to pay for goods and services, transfer money and exchange data about their payments.
They are also targeted at supporting innovation at the customer level for a faster, more flexible and secure payments infrastructure.
Payments Canada president and CEO Gerry Gaetz said: “Payment system modernization is about making sure we are competitive as a nation in a global economy.
“There are many things changing at a global level in payments – regulation, technology, new players, and opportunities for more payments data.”
The new changes will be implemented over the next four to five years, with significant enhancements in place as early as 2017.
All improvements will be designed to meet global standards for risk management in order to meet regulatory requirements and ensure safety.
As part of the plans, existing payment systems will see changes to assist financial institutions exchange payments faster and more frequently.
The move is aimed at giving individuals and businesses more immediate access to funds.
The changes also include deploying new real-time payments capability to make payments and money transfers will be faster and more convenient.
Global messaging standard ISO 20022 will be implemented to make electronic payments more accommodating and convenient.
Payments Canada said: “Canadian businesses need to ready themselves for ISO 20022 adoption to reap the benefits, which include enhanced payment information and streamlined cross-border payments.”
To strengthen Canada's competitive position, Payments Canada will implement and operate a new core clearing and settlement system.
Under the new plans, modernization of the legal framework for Canada's payment clearing and settlement systems will be carried out.
Image: Global messaging standard ISO 20022 will be implemented unde the new plans. Photo courtesy of Payments Canada.
