Canada’s payments infrastructure is set for an overhaul in 2016

Finextra is reporting that Canadian FinTech companies may soon have the benefit of building their services on top of a new payments infrastructure.

According to the report, the Canadian Payments Association has hired McKinsey, a global consulting firm, to draft a plan modernizing Canada’s core payments infrastructure. The goal is to have McKinsey identify go-forward strategy and requirements by mid-2016.

One key component to an upgraded payments system have already been identified by the CPA, however: a real-time payments system, likely based on the ISO 20022 standard. The CPA has already released a public consultation document seeking input on the potential global payments messaging standard

“The two initiatives launched today are critical steps in the plan to modernise Canada’s payments system,” said Gerry Gaetz, president and CEO of the CPA. “While Canadians today enjoy and benefit from a safe and sound financial system, changing user needs, along with new technological and regulatory drivers, are exerting pressure on the payments system. In this environment, it is essential that the CPA evolve to support the expectations of Canadians in the digital age.”

This report was first published on BetaKit.