IN CASE YOU MISSED IT – Canada is making headlines following recent legislative changes to allow digital payments companies to connect to its Real-Time Rail (RTR) system. It’s the next big step in modernizing Canada’s payment infrastructure and will give Canadians more options to make payments faster and more convenient. 

American lawmakers should take note. A new report from Payments Canada, the organization responsible for owning and operating Canada’s payment infrastructure, outlines the benefits this move will have for all Canadians:

People and small businesses will be able to move money instantly 24 hours a day, seven days a week, 365 days a year. As Payments Canada notes, “the RTR’s instant payment processing enables the immediate delivery of funds to end-user accounts and real-time confirmations to the payment senders and receivers.” That means better cash flow for small businesses and immediate access to money for families. 

Canada’s economy will see a major boost. A study from the C.D. Howe Institute found that “the introduction of the Real-Time Rail (RTR) Fast Payment System in Canada will add over $3 billion to the Canadian economy over the first five years, with consumers reaping significant rewards.”

Competition and innovation will grow. By allowing digital payment companies to connect directly, Canada is opening its system to new players and fresh ideas. According to Payments Canada, “the RTR provides an open platform to develop new and innovative payment solutions to meet the needs of payment end users and enable competitive differentiation.”

The Bottom Line:

Canada is moving decisively toward faster, more open, and more secure payments. Meanwhile, America’s outdated system continues to keep consumers and small businesses waiting. As we noted, America is already falling behind other countries on payments.

Thankfully, Republican and Democratic lawmakers and the Trump administration have all signaled support for modernizing our payments system to make it easier for digital payments companies to compete.

What’s Next for the U.S.?Congress must act now. A new payments charter for digital payments companies would give American consumers and businesses the same benefits Canadians enjoy today moving forward—real-time payments, stronger competition, and better protection. It’s time to ensure the United States remains First in Finance.

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