bankingciooutlook

An Overview of Canada's Rapid and Secure Payments Infrastructure

Banking CIO Outlook | Tuesday, August 02, 2022

Customers in Canada have a wide range of options for credit cards, which are offered by hundreds of institutions ranging from banks and credit unions to stores.

FREMONT, CA: Strong financial institutions are the cornerstone of Canada's safe, creative, and efficient payments system. Canadians appreciate and believe in the payments system that enables them to conduct daily transactions. Moreover, these transactions drive the nation's economy.

The well-functioning Canadian payment system: When making a purchase or paying a debt, users can use cash, checks, debit and credit cards, and electronic payment services such as Interac e-Transfer, online bill payments, and mobile payments. Many of these alternatives are accessible for in-store and online purchases.

Canadians have become reliant on their payment system's variety and overall dependability. They expect the payments they start will be executed swiftly, precisely, and securely. This confidence is crucial to the health and productivity of the Canadian economy.

The coronavirus pandemic drove a surge in digital payments, especially contactless payments, as Canadians modified how they transacted in response to concerns around the physical handling of cash and restrictions that disallowed some in-person purchases. According to a 2021 payments patterns during COVID-19 study conducted by Payments Canada, 42 percent of Canadians report that the pandemic has permanently shifted their payment preferences to digital and contactless.

Canada's productivity has increased, and its economy has grown due to technological advancements in payment processing. Canadian banks have made substantial investments in Payment Canada's payment modernization initiative, which includes Real-time Rail, which will enable Canadians to send and receive payments in seconds, 24 hours a day. This is in addition to investments made in Canada's high-value payment system, the linchpin of the country's financial sector infrastructure.

Safe, secure, and convenient debit card transactions: With several payment options available, many Canadians prefer to use their debit card since it enables them to make payments from their bank account swiftly and without the need to carry vast amounts of cash.

Canadians can use their debit cards to make purchases at internet stores and to send money to pals via e-mail money transfers; therefore, electronic debit payments are on the rise. And users of debit cards can wave their cards in front of a reader to do transactions, often up to $250. Regardless of the type of transaction, debit card customers are always protected, and their financial institution will reimburse them if they fall victim to fraud.

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