Canadian Payments Association and Bank of Canada Envision the Future of Canadian Payments

by Istvan Fekete on September 30, 2015

The payments landscape in Canada is changing rapidly and will continue to evolve, fuelled by strong, persistent drivers such as user demand for fast, secure, and information-rich payments; the entrance of new players, such as Apple Pay (rumoured for November) and Shopify; and last, but not least, increased demand from global corporations and financial institutions for an efficient and effective cross-border payments experience. That’s why the Canadian Payments Association and Bank of Canada have presented their vision of the future of payments in Canada and outlined areas of focus for the payments industry.

The vision was shared in a white paper titled “Public Policy Objectives and the Next Generation of CPA Systems: An Analytical Framework”, and relies on research, global perspective, and industry views. The research highlights the most critical issues the industry must look into and solve to improve the payment system to meet Canadian demand.

“There are many options for the future of payment systems and many opinions on what should take top priority,” said Carol Ann Northcott, Vice-President, Risk, Security and Research and Chief Risk Officer at CPA. “This research gives us a way of assessing the issues, and the tradeoffs, in a comprehensive and systematic way.”

The paper aims to provide a tool to consider the ability of a payment system to balance the Canadian public policy objectives of safety and soundness, efficiency, and end-user interests of the system. These attributes are access, functionality, interoperability, timeliness of payments, and risk management.

“The global payments ecosystem is changing, enabled by new technology and driven by changing user demands,” said Gerry Gaetz, President and CEO of the CPA. “In Canada, we are taking a holistic approach to modernizing our systems, which includes significant research, a global perspective and industry consultation. This particular piece of research is a first step and will help frame industry discussions as we move forward.”

The full white paper can be read on the Canadian Payments Association’s website.

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Written by: Istvan Fekete. Follow by: RSS, Twitter, Facebook, or YouTube.

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