Canada has had an IP scheme in place for nearly 20 years — but IP is still growing 45% YOY. With another scheme in development, the Canadian IP market is poised for strong growth and adoption throughout the next decade.
Canada’s current digital instant money transfer platform is called Interac e-Transfer. It enables users to transfer money directly from one bank account to another, and operates 24/7/365. Transactions are either settled in real time or near-real time (within a maximum of 30 minutes), with users able to make P2P, C2B, B2B and B2C transactions. Users can initiate payments through a participating financial institution’s online or mobile banking application, and funds can be transferred by entering the recipient’s email address or the mobile phone number linked to their bank account — without having to provide any sensitive or personal financial information.
Although there is no specified limit for fund transfers, financial institutions set sending and receiving limits to control fraud risk. The service also enables cross-border money transfers through partnerships with money transfer operators Western Union and Mastercard.
To further capitalize on IP, Payments Canada is developing a new and advanced IP system known as Real-Time Rail (RTR), which is expected to go live in 2021. The system will also support API integration, enabling participants to offer value-added services through the platform.