Inviting payment service providers to participate on the Real-Time Rail

Q and A with Rondev Bhattacharya, Director of Industry Relations at Payments Canada

As Director, Industry Relations, Rondev leads efforts to provide best-in-class support and engagement for our members and stakeholders, fostering collaboration across the payment ecosystem. His team drives initiatives that enhance trust, efficiency and innovation while aligning stakeholder needs with strategic industry objectives. Contact Rondev’s team at info@payments.ca for more information about the Real-Time Rail or to start the application process.

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The Bank of Canada is now supervising payment service providers (PSPs) under the Retail Payments Activities Act (RPAA). Once changes to the Canadian Payments Act (CP Act) come into effect, registered PSPs will be eligible to apply for Payments Canada membership and Real-Time Rail (RTR) system participation. Rondev Bhattacharya explains what this means for PSPs and shares a new resource for PSPs interested in the RTR.

In your recent Canadian Finance News article you shared that Canada’s payment systems are undergoing a transformation. Can you elaborate on that?
As the needs and behaviours of Canadians shift, so too does the way they pay and get paid. To meet these evolving demands, Payments Canada is working closely with industry stakeholders and members to modernize our national payment infrastructure and ensure global competitiveness.

A huge focus for us right now is the RTR, which will be Canada’s new national real-time payment system. The RTR will allow payments to be sent, received, cleared and settled in real-time, 24/7/365.

Our work with the industry includes preparing PSPs to apply for Payments Canada membership and RTR system participation. The RTR will offer a transformative foundation for real-time payments in Canada, giving PSPs the opportunity to deliver faster, smarter and more flexible payment solutions to their customers.

How do PSPs fit into the efforts to modernize national payment infrastructure and ensure global competitiveness?
Earlier in the week there was an exciting development on this front. For context, PSPs play an essential role in the Canadian economy by enabling secure, efficient and innovative ways for money to move between individuals, businesses and institutions. By offering a variety of payment processing options, PSPs help keep Canada globally competitive and accelerate the growth of the economy.

This week, the Bank of Canada announced it began supervising PSPs under the RPAA, a development that gets PSPs one step closer to participation on the RTR. We are still awaiting related changes to the CP Act to come into force, but once that happens, registered PSPs will be able to apply for Payments Canada membership and to participate on the RTR. We are eager to welcome PSPs as new Payments Canada members and are already having meaningful conversations with them to get the ball rolling.

Ahead of CP Act changes coming into effect, we want to connect with PSPs to understand their unique payment needs so we can find a RTR participation path that best suits their business. There are multiple RTR participation options, allowing PSPs flexibility in choosing a path tailored to them. I invite PSPs to reach out to my team at info@payments.ca to start the conversation.

We’ve developed a comprehensive guide for PSPs to learn more about RTR participation and the options available to them. Download The Real-Time Rail Participation Guide for Payment Service Providers for more information.

What are PSPs set to gain by participating on the RTR?
The RTR will provide PSPs with a platform that enables instant, 24/7/365 payment processing and immediate fund delivery with real-time confirmation. This will allow PSPs to improve customer experience, meeting Canadians’ growing demands for speed and convenience.

Real-time settlement through the RTR will eliminate credit risk between participants, freeing liquidity and strengthening financial stability. Knowing their cash and liquidity management position in real-time will unlock a number of new business opportunities for PSPs and their clients. And broad, near-ubiquitous access to accounts across Canada will allow PSPs to rapidly scale and expand market reach.

The RTR is an open platform that invites innovation, enabling PSPs to differentiate by developing new payment products and value-added services for consumers and businesses alike.

With the RTR, PSPs can help clients avoid late fees and manage time-sensitive financial needs with real-time account funding through Me-to-Me transfers. This instant access to guaranteed funds allows PSPs to solve a real-world challenge for their clients while offering flexibility and peace of mind.

The use of ISO 20022 messaging supports data-rich payments with detailed remittance information, automating reconciliation and reducing back-office costs. Imagine not having to manually match an invoice to a payment — with ISO 20022, that data travels together. And with the RTR, PSPs can reduce operational friction from payment disputes, as payments are final and irrevocable once confirmed, eliminating chargebacks.

In the B2B space, PSPs that leverage the RTR can have a competitive advantage attracting and retaining clients who want to streamline payroll for their employees. With the RTR, PSPs can support businesses providing employees with immediate access to funds they've already earned.

PSPs can also feel confident in the solutions they offer their clients knowing that the RTR will comply with the Bank of Canada’s rigorous risk management standards and will have enhanced system security through centralized fraud prevention tools. Altogether the RTR will position PSPs to capture new revenue streams, increase operational efficiency and strengthen competitive advantage in Canada’s evolving digital economy.

What can PSPs do to prepare for the RTR?
My team is here to help PSPs and other new members succeed. By understanding their options, along with the onboarding and system requirements, PSPs can make informed business decisions. We want to help PSPs leverage the full potential of the RTR and offer their customers a faster, smarter, safer way to pay.

PSPs can learn more about RTR participation by downloading The Real-Time Rail Participation Guide for Payment Service Providers and contacting my team at info@payments.ca.