Payments Canada announces launch of Canada's Real-Time Rail (RTR) payment system

Payments Canada has launched Canada’s Real-Time Rail (RTR), a system designed to let consumers and businesses send and receive money within seconds, at any time of day, including weekends and holidays. It replaces the batch processing used for many payments, which can delay access to funds. Developed since 2021 with CGI, Deloitte Canada, IBM Canada and Interac, RTR is now under the Bank of Canada’s formal oversight. Canada is the last G7 country to introduce such a system. Its planned safeguards include tools for sharing fraud intelligence, a database of fraud risks, transaction safety scoring and confirmation that a payment is going to the intended recipient. Faster processing could also reduce costs, reliance on cash and cheques, and the time funds remain unavailable to recipients; the C.D. Howe Institute estimates potential savings of up to $14.5.

RTR could enable instant transfers between a person’s accounts at different financial institutions, making it easier to pay a credit card or add money to a brokerage account. Employers may be able to pay workers as soon as a job is done, rather than waiting for a weekly or biweekly payday, which could particularly benefit gig workers, freelancers and contractors. Immediate payments may also help workers facing urgent expenses avoid payday loans, while landlords and merchants could receive funds and confirmation right away. Access is initially limited to eight participating institutions, including Wealthsimple, KOHO and Peoples Trust Company. Wealthsimple is testing features for a planned 2027 rollout, and major banks are expected to join over time; RBC anticipates introducing RTR in the second quarter of 2027.