Payments Canada and the Bank of Canada are in the process of setting up Real-Time Rail (RTR), a network that will allow Canadians to initiate payments and receive irrevocable funds in seconds, 24 hours a day, seven days a week. It will launch next year.

Why should we care?
Payments Canada and the Bank of Canada this week announced that they selected Interac as the exchange solution provider for the RTR, a move that is expected to facilitate connectivity to almost 300 Canadian financial institutions. Interac is a network that connects Canadian financial institutions and other entities to facilitate electronic financial transactions. It’s also the backbone of a Canadian peer-to-peer payments network reminiscent of Zelle in the U.S. It’s hoped that the partnership with Interac will enhance adoption and facilitate faster, data-rich payments, allow for new ways for Canadians to pay for goods and services, transfer money, and “compete nationally and internationally,” according to Tracey Black, president and CEO of Payments Canada. The RTR will tap Mastercard Vocalink’s clearing and settlement capabilities. Payments Canada is a public purpose organization that owns and operates Canada's payments systems.