2017年-SWIFT环球同业银行金融电讯_The_rapid_evolution_of_payments_in_Canada_3页_123kb

Summary of "THE RAPID EVOLUTION OF PAYMENTS IN CANADA"

Core Content

Payments Canada, led by Jan Pilbauer, is spearheading a modernization initiative to align Canada's payment systems with evolving customer expectations and global standards. The goal is to create a secure, efficient, and interoperable payment ecosystem that supports the long-term growth of the Canadian economy. This initiative is part of a broader global shift towards faster, more convenient, and data-rich payment systems.

Main Viewpoints

• Customer Demand: Canadians now expect instant, always-on payment experiences similar to 'one click' shopping. Meeting these demands is essential for maintaining a secure and efficient national payments system.
• Global Leadership: Canada is positioned as a key player in the "second wave" of payments modernization, building on lessons learned from earlier modernization efforts in the UK and Europe.
• Four-Stage Journey: Payments Canada has completed the Vision and Roadmap phases, and is now in the Requirements and Implementation phases. The end state aims for a fast, flexible, and secure payment system.
• ISO 20022 Standard: This global payment message standard is central to Canada's modernization, enabling interoperability and richer data in transactions.
• Collaboration: A consultative approach involving regulators, financial institutions, and international partners like SWIFT and R3 has been crucial to the initiative's progress.

Key Information

1. New Core Clearing & Settlement System – Lynx

• Replaces the Large Value Transfer System (LVTS).
• Works in tandem with the new retail-batch Automated Clearing Settlement System (ACSS).
• Based on ISO 20022 and incorporates liquidity savings mechanisms.
• Designed to meet international risk management standards for both high-value and retail payments.

2. Real-Time Payment Rail

• A new platform for innovation in the Canadian payments ecosystem.
• Will provide near real-time clearing and funds availability.
• Supports rich remittance information through ISO 20022.
• Enables overlay services for consumers and small to medium-sized businesses.

3. Enhancements to Batch Automated Funds Transfer (AFT)

• AFT batch payments will be ISO 20022-enabled.
• Operate alongside the real-time rail.
• Improve funds availability and clearing exchange windows.

4. Alignment with Global Regulatory Standards

• Introduce ex ante collateral pool in the near term for the batch-retail system (ACSS).
• Ensure all new systems align with global regulatory standards.
• Focus on safety, security, and compliance for all users.

5. Modernization of Policy Framework & Rules

• Develop a modern policy framework and rule set for both wholesale and retail payments.
• Enable flexibility and innovation while maintaining appropriate compliance.
• Reflect current market practices and support regulatory evolution.

Benefits of Modernization

• Faster and more convenient payments.
• Data-rich transactions with enhanced remittance information.
• Interoperability across financial market infrastructures.
• Ease of cross-border transactions.
• Transparency in transaction tracking.
• Cost savings through improved back-office reconciliation.

Implementation and Future Steps

• The target state document will detail specific system requirements and integration strategies.
• Procurement and assessment processes are underway for new systems.
• Continued collaboration with domestic and international partners is expected.
• A Sibos breakfast session will provide insights into global payments modernization efforts.

Conclusion

Payments Canada's modernization initiative is a strategic effort to transform the Canadian payments landscape, ensuring it remains competitive, secure, and aligned with global standards. By focusing on innovation, interoperability, and user-centric design, the initiative aims to deliver a robust and future-ready payment system that supports economic growth and enhances the customer experience.