The year 2024 was a pivotal one for the Interac GR&EA team, highlighted by the fruition of long-awaited legislative and regulatory advancements. Interac’s mission to spearhead Canada’s journey towards digital prosperity was bolstered by our proactive efforts to help shape policies that foster the digital economy and build public trust and adoption. Key legislative and regulatory measures included:
- Canadian Payments Act: Legislative changes made to the Canadian Payments Act will allow for more firms to become members of Payments Canada and gain access to the Real Time Rail. These changes will foster more competition in financial services.
- Retail Payment Activities Act (RPAA): Following release of regulations under the RPAA – all Payment Service Providers must now be registered with the Bank of Canada. This registration and ensuing regulatory requirements are intended to increase operational transparency, help prevent financial fraud, and strengthen the Canadian fintech market in alignment with international standards.
- Updates to the Financial Consumer Agency of Canada (FCAC) Code of Conduct for the Payment Card Industry in Canada were finalized. These changes are intended to promote transparency, strengthen merchant rights, and increase fairness in the payment card industry.
- Consumer-Driven Banking Framework: Announced in the Federal Budget 2024, the framework aims to provide Canadians with greater control over their financial data, improve financial outcomes, and support innovation in the financial sector. The enabling legislation for this framework is expected to be released as part of the next Budget Implementation Act.
- Payments Canada announces a renewed timeline for the launch of the Real Time Rail (RTR). The RTR Exchange will introduce real time clearing and settlement of payments, improving speed of transactions nationwide. This is crucial for Canadians and will provide new possibilities for businesses to grow and serve their customers. Interac is excited to take an expanded role in supporting Payments Canada in building and operating the RTR Exchange, and to explore delivering a centralized fraud and directory service as critical value-added services of the Exchange, drawing on our proven expertise and delivery track record as a trusted connection point for faster digital payments. The RTR is expected to be operational by 2026.
- Interac signs onto Canada’s Voluntary Code of Conduct on the Responsible Development and Management of Advanced Generative AI Systems. By embracing Canada’s voluntary generative AI code of conduct, Interac underscored its commitment to the responsible and ethical use of AI in our operations.
- Income verification for mortgages. Following advocacy from the mortgage sector and Interac, the Government of Canada committed in both its Budget and Fall Economic Statement to make available a tool to allow lenders to verify income to reduce incidents of first party fraud. This was one of Interac’s key asks in the government’s pre-budget consultation process. The Canada Revenue Agency (CRA) held consultations in the Fall to inform how the tool will work. When the tool is introduced, it will have a significant impact on the instances of first-party fraud.
- Quebec: Introduced legislation (Bill 82) to design and adopt a national digital identity. The National Assembly’s consultation on the legislation will take place in January 2025.
- Ontario: Passed Bill 194 to strengthen cybersecurity and artificial intelligence systems in public sector entities.
Interac was also active within the payments ecosystem to bring our expertise forward in matters that align with our north star of leading Canadians to digital prosperity.
40th Anniversary Campaign. To mark 40 years, Interac introduced its Faster Forward campaign to public officials, which examines how Canada can build for future growth and prosperity. The campaign was well received by elected representatives and officials.
Fraud Prevention Month. As part of fraud prevention month in March, we shared the results of the new Interac Corp. Canada-wide survey on fraud. The findings demonstrated that in today’s digital age, fraudulent activity is becoming increasingly sophisticated, forcing Canadians to navigate a complex fraud landscape
Fraud Summit: Interac participated in a summit hosted by the Canadian Bankers Association. The attendees at this summit represented a broad cross-section of government, financial institutions, cybersecurity, technology, communications, and key regulatory bodies, all of whom play a crucial role in shaping the landscape of digital security and fraud prevention.
Collision Conference: Interac was pleased to meet with Industry Minister François-Philippe Champagne and Small Business Minister Rechie Valdez at the Interac Collision booth.
Support for the McGill Public Policy’s Policy Lab: Interac delivered a presentation to students on key limiting factors contributing to the delayed adoption of citizen focused government services and how the federal government can mitigate these factors to bring more services online.
As Interac continues to innovate and expand its services to meet the evolving needs of Canadians, our focus will remain on fostering strong partnerships with government and industry leaders to drive economic growth and lead Canadians to digital prosperity.
