Key changes to the Canadian Payments Act have now been implemented, marking a critical step toward a more inclusive and innovative national payment infrastructure in Canada.
The legislative changes, now coming into force, allow Payments Canada to expand its membership to a wider range of participants — the first step toward access to Payments Canada systems that cleared and settled more than $424 billion every business day in 2024. These systems include the ACSS (retail batch payment system), Lynx (Canada’s high-value payment system) and the forthcoming Real-Time Rail. The expansion of membership will promote competition and innovation in the payment ecosystem, ultimately providing Canadian businesses and consumers with more choice in payment methods so that they can choose the method that best fits their needs. Other benefits include greater trust in emerging payment options, stronger financial inclusion and enablement of economic benefits intended to support national prosperity and productivity. Ultimately it will improve Canada’s global competitiveness.
“This is a pivotal moment for Canada’s payment ecosystem,” said Susan E. Hawkins, President and CEO, Payments Canada. “The changes to the Canadian Payments Act are the culmination of years of collaboration across the payment industry and exemplify what we can accomplish together for Canada. By enabling more organizations to access our critical national payment infrastructure, we are not only driving safe innovation and competition, but we are also building a more resilient payment ecosystem that will deliver meaningful economic and social benefits.”
Implementing these changes will also help give Canadian financial institutions and businesses a competitive edge in the global market. “By broadening access to the systems that move money in Canada, we are injecting innovation and greater competition across the financial sector,” said the Honourable François-Philippe Champagne, Minister of Finance and National Revenue. “This means more choice, better services, and progress toward faster and more secure payments required for a stronger, more connected Canadian economy.”
Prior to legislative changes, Payments Canada membership was limited to banks, credit union centrals and select other financial institution types. The Government of Canada’s changes to the Canadian Payments Act expand membership eligibility to include payment service providers as defined in the Retail Payment Activities Act, credit union locals that are members of a central, and clearing houses of systems designated under the Payments Clearing and Settlement Act.
Payments Canada is actively preparing potential new members by ensuring they understand both the benefits of membership and the rules and requirements for participating in its systems.