Payment Systems & Modernization in Canada

Canada is the second largest country in the world by total area, with a population of 38 million approximately, as per Q2, 2020 census. Operating across 6 primary time zones, the consumer and business transactions constitute a total of 21.1 billion by volume and CA$ 9.9 trillion by value, for the year 2018, as per Payments Canada Association. The value is approximately 4 times the GDP of Canada in 2018, i.e. CA$ 2.39 trillion.

Payments Canada, which was officially established as Payments Canada Association in 1980, is the key body to establish and operate Payment Clearing and Settlement systems in Canada, viz. the Automated Clearing Settlement System (ACSS) and the Large Value Transfer System (LVTS). With the growing new technologies, the customer demands and increased international competition, Payments Canada had initiated modernization of existing Canadian Payment Systems.

With an aim to accelerate the economy of Canada, modernization of Canadian Payment Systems is one of the key initiates, which will benefit the Canadian financial institutions, other payment Service providers, businesses and consumers. Introduction of faster, safer and data-rich payments will boost the payments digitization which will further improve the bottom lines and lowers the operational costs. The Roadmap depicts the progress and the tentative time-lines for the completion of a new and modern Canadian Payment Systems.

This paper contains detailed information about the current payment systems in Canada and how they function, viz,

  • Automated Clearing Settlement System (ACSS)
  • Large Value Transfer System (LVTS)
  • Interac
  • US Dollar Bulk Exchange (USBE) system

After reading the paper, you will also understand about the proprietary message format, Standard 005, used for files exchange between ACSS participants, ISO 20022 message portfolios used by Payments Canada, Electronic Data Interchange (EDI), direct & indirect clearing and much more.

You can download the complete paper in the link provided below.


Thank you Srikanth Nadakuduru for the outstanding work.

10 Responses to Payment Systems & Modernization in Canada

  1. Ajay kumar June 24, 2020 at 6:46 pm #

    Nice Srikanth. 👍👍

    • Srikanth Nadakuduru June 25, 2020 at 4:04 am #

      Thanks Ajay.
      Happy Reading!

  2. Aditya N R June 26, 2020 at 12:00 pm #

    Hi Srikanth. Your paper is very nicely structured and very lucid. It will be very useful for anyone doing a Payments Project Imple as a basic reference Doc. It reflects your interest in Payments domain and also your excellent knowledge. Keep the good work going

    • Srikanth Nadakuduru June 26, 2020 at 5:28 pm #

      Thank you Aditya N R,

  3. Lakshminaraya June 27, 2020 at 1:36 pm #

    Good work Srikantj

    • Srikanth Nadakuduru June 27, 2020 at 2:11 pm #

      Thanks Lakshmi narayana

  4. Puvi February 23, 2021 at 7:57 am #

    Great work

    • Srikanth Nadakuduru March 7, 2021 at 3:09 pm #

      Thanks Puvi

  5. Vel January 4, 2022 at 3:38 pm #

    well done Srikanth.

    • Srikanth Nadakuduru January 18, 2022 at 6:30 am #

      Hi Vel, thanks for your appreciation.

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