The Need for Speed: The Benefits of Faster Payments and How to Achieve Them

[...]make it easier to challenge incumbent payment methods by promoting a level playing field among them. [...]the Department of Finance should ensure that the RTR agenda moves ahead with a clear and holistic regulatory approach to retail payment systems. "1 As a first important step, it overha...

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Bibliographic Details
Published inCommentary - C.D. Howe Institute no. 650; pp. 0_1 - 28
Main Authors Kronick, Jeremy M, Koeppl, Thorsten
Format Journal Article
LanguageEnglish
Published C.D. Howe Institute 01.12.2023
Subjects
Charitable foundations
Clearance & settlement
Competition
Financial institutions
Financial services
Monetary policy
Payment systems
Canada
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Summary:[...]make it easier to challenge incumbent payment methods by promoting a level playing field among them. [...]the Department of Finance should ensure that the RTR agenda moves ahead with a clear and holistic regulatory approach to retail payment systems. "1 As a first important step, it overhauled its large-value (wholesale) payment system - roughly, large financial institutions transferring funds to other large financial institutions - with the introduction of Lynx and the upgrade of the system to ISO 20022, a global messaging standard that allows for data-rich payments.2 On the retail front, some groundwork for reform was laid with the introduction of the Retail Payments Activities Act (RPAA) together with regulation setting out the rules payment service providers (PSPs) must follow when holding users' funds and performing other payment functions. The project embodies not only moving to new technologies, but also envisions broader access to the system, whereby new, non-bank PSPs can challenge incumbent financial institutions to develop customer-oriented payment solutions.
ISSN:0824-8001
1703-0765