Canada's Real-Time Rail launch to exclude major banks in initial phase

Payments Canada plans to launch the first phase of its Real-Time Rail payment system in the fourth quarter of 2026 without the participation of the country's largest banks, according to a report by BetaKit on October 8, 2026.

The Real-Time Rail system is designed as an instant, 24/7 fund transfer network capable of settling transactions up to $100,000. Built by non-profit organization Payments Canada, the infrastructure aims to allow financial technology firms to transfer funds directly without relying on traditional bank rails or paying bank fees.

Four industry sources told BetaKit that none of Canada's Big Six banks are scheduled to join the initial rollout because the institutions require additional technical integration. Both the sending and receiving institutions must be onboarded to the system for a transfer to settle through Real-Time Rail.

If a payment rail is built that "95 percent of the country doesn’t use or have access to, it’s kind of performative," said Daniel Eberhard of financial technology company Koho.

Payments Canada Chief Payments Officer Donna Kinoshita declined to list participating institutions, stating in an email that the decision was made "to protect the integrity of testing and launch."

The Canadian Bankers Association said in an email that it "supports the multi-wave approach of the RTR implementation, which will expand to include many of our members across Canada." Toronto-Dominion Bank, Bank of Montreal, and Canadian Imperial Bank of Commerce referred questions to the association, while Royal Bank of Canada, National Bank, and Scotiabank did not respond before publication.

Development of the system began in 2015 with a target launch date of 2019. Payments Canada repeatedly adjusted the timeline, moving the target to 2022, then mid-2023, and finally late 2026. Canada is currently the only G7 country without a national instant payment network.

Federal officials said they aim to have all major financial institutions participating in the system by next summer, as Finance Minister François-Philippe Champagne oversees system policy.