Payments Canada launches new high-value payment system

Payments Canada has launched Lynx, Canada’s new high-value payment system which replaces the large value transfer system in place for more than 20 years.

Lynx, which is owned and operated by Payments Canada and overseen by the Bank of Canada, will be used to send and receive high-value payments, providing enhanced cyber security and designed to support interfaces and APIs.

Among the participants and their customers that will use the new payment system are Royal Bank of Canada, State Street, ATB Financial, HSBC Bank Canada, Bank of America, BNP Paribas (Canada) and Canadian Imperial Bank of Commerce.

Tracey Black, president and CEO of Payments Canada, said: “The payments ecosystem is rapidly evolving. Our role at Payments Canada is to support the innovation of payments infrastructure and rules to make payments easier, smarter, and safer for all Canadians.

“Lynx is an integral part of our broader payments modernisation initiative to deliver the future of payments for Canada. The launch of Lynx represents a significant collaborative effort between Payments Canada, our member participants, our technology partners IBM and SIA, and the Bank of Canada.”

This is the first release of Lynx, with a second release planned for late 2022, which will introduce the ISO 20022 message standard.

Payments Canada said that this standard will enable data-rich payments, supporting the introduction of new products and services, and the digitisation of manual and paper-based processes related to invoicing and payment reconciliation.

Bank of Canada governor Tiff Macklem added: “It’s essential that Canada has a modern and robust wholesale payments system, and so, after much preparation, I’m very pleased to see the arrival of Lynx.

“The launch of Lynx is an important step in making sure Canada’s financial system remains secure, stable and efficient in today’s rapidly evolving economy.”