Canada’s payment ecosystem is undergoing a transformative shift, driven by the forthcoming Real-Time Rail (RTR) payment system, rising fraud concerns, and evolving e-commerce trends. Recent updates from Payments Canada, highlighted through informative sessions, industry summits, and research, highlight the nation’s commitment to modernizing its financial infrastructure while prioritizing security and innovation.
Payments Canada updaters explore key developments in the RTR, data-driven fraud prevention strategies, and emerging payment and e-commerce trends shaping Canada’s digital economy.
Payments Canada recently concluded a series of educational sessions, with the final one held on June 12, 2025, focusing on the legal framework for the RTR, Canada’s first real-time payment system.
Designed to facilitate instant, data-rich transactions 24/7/365, the RTR is a cornerstone of Canada’s payment modernization efforts.
The system, co-led by Payments Canada and Interac, is approximately 60% complete and on track for completion by Q3 2025.
Unlike traditional payment systems, the RTR will enable seamless, irrevocable transactions with enhanced data capabilities, allowing businesses to move beyond paper-based invoicing and cheques.
This shift promises to streamline corporate and commercial payments, fostering greater efficiency in Canada’s $107 trillion annual transaction economy.
The webinars emphasized robust fraud prevention as a core component of the RTR. From day one, the system will integrate centralized fraud-scoring services, real-time risk monitoring, and confirmation-of-payee checks.
These measures aim to address the vulnerabilities inherent in instant payment systems, where the speed of transactions can outpace traditional fraud detection methods.
By embedding advanced security protocols, the RTR seeks to set a global standard for secure real-time payments
As digital payments surge, so do fraud risks.
At The 2025 Payments Canada SUMMIT, experts like Omotola Adogba, Fraud Business Analyst at Payments Canada, and Phillip Straley, President of FNA, highlighted the growing sophistication of fraudsters leveraging technologies like generative AI and FraudGPT.
Common scams, including romance, investment, and impersonation fraud, exploit the speed of instant payment systems to rapidly move funds out of reach.
In Canada, research indicates that 13% of consumers and 20% of businesses experienced payment fraud over a six-month period, with losses often ranging from $500 to $3,000.
To counter these threats, Payments Canada is supporting centralized anti fraud services for the RTR.
Drawing inspiration from global models like Malaysia’s National Scam Response Center, experts advocate for real-time track-and-trace capabilities and shared technology infrastructures.
These systems enable financial institutions to coordinate responses, freeze funds within minutes, and recover scammed funds more effectively—achieving up to 100% recovery when reported promptly.
AI and machine learning are also pivotal, using network-level data to detect patterns and automate fraud responses, significantly enhancing detection speed and accuracy.
Payments Canada’s research, published on June 6, 2025, reveals evolving consumer and business behaviors in Canada’s payment landscape.
Ninety percent of Canadians find purchasing from domestic online merchants easier than international ones, with 56% satisfied with payment processing times.
However, security remains paramount, with 45% of Canadians citing fraud detection as the top benefit of generative AI in payments.
Businesses, too, are embracing AI, with 44% prioritizing it for fraud prevention, followed by automating payment processing (37%) and personalizing customer experiences (29%).
Emerging payment methods like pay-by-bank are gaining traction, with 27% of Canadians expressing interest due to enhanced security and faster processing.
Prepaid cards, particularly open-loop variants, are also growing, with a 7% increase in volume and 24% in value since 2019, driven by fintech innovations targeting younger consumers.
However, social commerce faces hurdles, with 48% of Canadians citing security concerns as a barrier to adoption.
The RTR’s launch, coupled with advanced fraud defenses and innovative payment methods, positions Canada as a key player in global payment modernization.
Collaboration across regulators, financial institutions, and technology providers is critical to balancing speed, security, and user trust.
As Susan Hawkins, President and CEO of Payments Canada, emphasized at The 2025 SUMMIT, unity and data-driven strategies will drive the next phase of Canada’s payment evolution, ensuring a resilient and competitive digital economy.