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Canadian Payments Landscape

IP.com Disclosure Number: IPCOM000244624D
Original Publication Date: 2010-Sep-01
Included in the Prior Art Database: 2015-Dec-30
Document File: 196 page(s) / 3M

Publishing Venue



A Full report on the Canadian Payments system as of September 2010.

This text was extracted from a PDF file.
This is the abbreviated version, containing approximately 3% of the total text.

Page 01 of 196

Canadian Payments Landscape

Prepared for the
Task Force for the Payments System Review

September, 2010

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Prepared by Deloitte

Page 02 of 196

Executive Summary: Overview of the Canadian Payments System

• Extremely complex system involving a wide range of stakeholders • There is a wide, and growing, range of payment methods available to consumers, merchants, businesses, corporations and governments • Incumbents (such as Canadian banks), new entrants (such as e-commerce specialists) and global payments providers (such as the credit card networks) are rapidly expanding the range and breadth of payments options available to Canadians • Likewise, a range of payment enablers are also actively contributing to this expansion
• There is active competition across all parts of the complex payments landscape.

 There are no participants that dominate the system • The current regulatory environment is complex, involving multiple industry stakeholders and levels of government • In general, consumer oriented payment mechanisms (cash, debit and credit) account for the bulk of payments transactions • In general, business oriented payment mechanisms (LVTS) account for the bulk of payment dollar values • Electronic payment mechanisms (e.g. debit) generally are growing while conventional paper based methods (e.g. cheque)

Prepared by Deloitte

Overview of the Canadian Payments


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Page 03 of 196

Executive Summary: Overview of Key Payments Trends

• The Canadian payments landscape has evolved in quite distinct phases over preceding decades

• Over the past decade, the marketplace changes have resulted in much greater choice for consumers and higher levels of innovation

• Most of the innovation has been centred on the consumer oriented payments and not corporate oriented methods (e.g. LVTS, SWIFT)

• A wide range of factors are driving this accelerating rate of change:
- Expansion and convergence of payment form factors
- Accelerating pace of innovation
- Increasing global collaboration
- Maturing of consumer preferences
- Historic regulation losing relevance
- Increasing security and privacy challenges
- Leadership of global, scale-efficient players

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Overview of Key Payments


Prepared by Deloitte

Page 04 of 196

Table of Contents

1. Introduction

2. Payments Overview

a. What is a Payment?

b. The Canadian Payments Ecosystem

c. Canadian Payments System Regulatory Framework

3. Review of Payment Methods

4. Review of Participants in the Payments Ecosystem

5. Appendices

a. Participant Profiles

b. Review of Payment-Related Activities

c. Glossary of Terms

d. Further Reading

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Prepared by Deloitte

Page 05 of 196

1. Introduction

This current-state summary of the Canadian Payments Landscape has been prepared for the Task Force for the Payments System Review

Report Background

• The Task Force for the Payments System Review was formed in June 2010 by the Department of Finance Canada with the objective of reviewing the Canadi...