The Bankwatch

Tracking the consumer evolution of financial services

Canada digital payments report–intends to upgrade the Canadian Payments Association to meet needs of mobile payments

Here are recommendations from the Government of Canada digital Payments report released yesterday. Now the comments in the Federal Budget make sense.  The Canadian Payments Association (CPA) was designed in the days of cheques. Time to bring the bureaucracy up to date.

Government must lead the change.
For Canada’s payments system to substantially modernize, changes are required in multiple arenas, from consumer behaviours to accounting solutions, to the very procedures governments rely upon in delivering services. Industry has not implemented change due in part to uncertainty and lack of coordination. Therefore, the Government of Canada should lead the change by undertaking the following actions:
• Implement electronic invoicing and payments (EIP) for all government suppliers and benefit recipients.
• Partner with the private sector to create a mobile ecosystem.
• Propel the build of a digital identification and authentication (DIA) regime to underpin a modernized payments system and protect Canadians’ privacy.

The Task Force also calls on the Government of Canada to overhaul the governance structure of Canada’s payments system in a manner that puts the needs of users (consumers and businesses) first, protects the public interest and encourages collaboration and innovation by all stakeholders now and in the future.

Specifically, the Government of Canada should pass legislation to:

1. Define a discrete payments industry and require payments service providers to become members.
2. Create a new public oversight body for the payments industry that will:

a) Protect the public interest as broadly defined through a principles-based approach;
b) Monitor the implementation of changes to the payments system, ensure that it continues to meet the public
interest and propose adjustments where necessary;
c) Provide redress, where necessary, when industry behavior no long inspires trust, or enables access, competition or innovation.

3. Encourage industry to create a broad-based, collaborative, self-governance organization including both providers and users to develop and implement strategy and standards for the payments industry. This entity would be recognized by the public oversight body as a self governing organization.
4. Reinvent the objects, governance, powers , business model and funding of the Canadian Payments Association (CPA). This will enable the CPA to deliver the modern systems required for meeting the payments needs of all Canadians into the future.

Written by Colin Henderson

March 31, 2012 at 15:09

Posted in Uncategorized

2 Responses

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  1. […] Bruce Summers of the Kansas City Fed (retired) produces a highly articulate and relevant account (pdf) of the US Payments system that equally matches the Canadian. […]

  2. […] Bruce Summers of the Kansas City Fed (retired) produces a highly articulate and relevant account (pdf) of the US Payments system that equally matches the Canadian. […]

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