Shaping the Future of Payments
Consumer-Driven Banking could change more than how Canadians access financial data. Its next phase is expected to support payment initiation, helping consumers and businesses make secure, account-to-account payments from the applications they choose.
From viewing information to taking action
The first phase of Consumer-Driven Banking allows approved services to receive financial data with the consumer’s authorization.
Payment initiation represents an important next step. Instead of only viewing balances or transactions, a consumer could authorize an approved application to send a payment instruction to their financial institution.
The consumer would still review and approve the payment. The participating service would initiate the request, while the financial institution and payment system would process and settle the transaction.
This combination of financial data and payment capability could support simpler checkout experiences, automated business processes and new competition in Canadian payments.
What is payment initiation?
Payment initiation allows a consumer to authorize an approved provider to send a payment instruction from their financial account.
Select payment
The consumer chooses to pay from their bank account inside a participating application or checkout experience.
Review details
The amount, recipient, source account, timing and other important details are presented for review.
Authorize securely
The consumer authenticates with their financial institution and expressly approves the payment.
Send instruction
The approved application sends the authorized payment instruction through a secure API.
Process payment
The financial institution and applicable payment system process, clear and settle the transaction.
The consumer must authorize the transaction, and the participating organizations must follow applicable authentication, security, fraud, consent and liability requirements.
Consumer-Driven Banking and payment infrastructure
Consumer-Driven Banking and payment rails perform different but complementary functions.
Consumer-Driven Banking
Defines how approved providers connect, how consumers give permission and how authorized financial actions may be requested.
- Consumer consent
- Participant eligibility
- Secure APIs
- Authentication requirements
- Data and payment permissions
- Liability and oversight
Payment infrastructure
Provides the systems and rules needed to exchange, clear and settle payments between participating financial institutions.
- Payment exchange
- Clearing and settlement
- Funds availability
- Transaction status
- Payment messaging
- Operational resilience
Canada’s Real-Time Rail
Payments Canada describes the Real-Time Rail as a real-time, data-rich exchange, clearing and settlement system designed to support instant payments at any time of day. Its planned launch provides an important foundation for new account-to-account payment experiences.
How payment experiences could change
The services that become available will depend on final rules, technical standards and participating providers.
Account-to-account checkout
Consumers could pay merchants directly from a bank account without manually entering account information.
Request-to-pay services
A business could send a structured payment request that a customer reviews and authorizes.
Small-business payments
Businesses could connect invoicing, accounting and payment services to reduce manual administration.
Invoice reconciliation
Richer payment information could help match incoming payments to invoices automatically.
Automated savings
A consumer could approve rules that help move funds toward savings goals through a selected service.
Account switching
Future financial actions could make it easier to move recurring arrangements between providers.
Embedded payments
Payments could be initiated inside non-bank applications where consumers already manage other activities.
New fintech services
Fintechs could combine authorized data and payment actions to build more personalized financial tools.
These are illustrative possibilities rather than confirmed Canadian product features. Final services will depend on the approved scope of payment initiation and industry participation.
Why this matters for Canadian payments
Combining secure data access with payment initiation could create benefits for consumers, businesses and financial service providers.
More consumer choice
Consumers could choose from more providers and payment experiences while retaining control over authorization.
Faster experiences
Real-time infrastructure could enable quicker payment confirmation and funds availability.
Greater competition
Standardized access could allow banks, credit unions, fintechs and payment providers to compete through service quality and innovation.
Potential cost efficiency
Direct account-based payments may create additional payment options for consumers and merchants.
Richer payment information
Data-rich payment messages could simplify reconciliation, record keeping and business cash-flow management.
Reduced manual work
Connected payments could reduce duplicate data entry, manual transfers and fragmented business processes.
Payments require additional safeguards
Initiating a payment carries greater risk than reading financial data, making strong security, fraud and consumer protection controls essential.
Explicit authorization
Consumers should clearly understand and approve the amount, recipient and account involved.
Strong authentication
Financial institutions must verify the identity and authority of the person approving the payment.
Fraud monitoring
Organizations need controls to identify unusual activity, impersonation and manipulated payment requests.
Clear liability
Rules must establish responsibility when payments are unauthorized, incorrectly executed or affected by fraud.
Approved participants
Payment initiation should be limited to organizations that meet applicable participation and oversight requirements.
Complaints and support
Consumers need understandable processes for reporting problems, disputing transactions and obtaining assistance.
Payments and Consumer-Driven Banking timeline
A high-level view of the milestones connecting financial data sharing and payments modernization.
Payment-initiation commitment
The Government committed to extending Consumer-Driven Banking to payment initiation by mid-2027.
View Budget 2025Framework implementation
Legislation, proposed regulations, Bank of Canada oversight and industry preparation establish the initial data-sharing framework.
Real-Time Rail launch
Payments Canada plans to launch the Real-Time Rail, providing real-time, data-rich payment capabilities.
Follow RTR implementationPayment initiation
The next phase is expected to allow consumers to authorize payment actions through participating applications.
Broader open-finance services
Canada may consider broader data, participant and write-access capabilities as the framework matures.
Targets and implementation timing may change. Consult official government, Bank of Canada and Payments Canada sources for current dates.
Official payments and framework sources
Use these sources for authoritative information about payment initiation, Consumer-Driven Banking and Canada’s payment infrastructure.
Canada’s Consumer-Driven Banking Framework
Explains the Government’s framework and its consideration of write access, payment initiation and future open-finance capabilities.
View frameworkBudget 2025
Contains the commitment to extend Consumer-Driven Banking to payment initiation by mid-2027.
View Budget 2025Real-Time Rail
Describes Canada’s new real-time, data-rich exchange, clearing and settlement payment system.
Explore the RTRConsumer-Driven Banking Oversight
Explains the Bank of Canada’s role in administering the framework and supervising participating organizations.
View oversightConsumer-Driven Banking Act
The federal legislation establishing the participation, consent, security, oversight and enforcement framework.
Read the ActProposed Consumer-Driven Banking Regulations
Proposed requirements involving accreditation, consent, security, authentication, reporting and record keeping.
View proposed regulationsOpen Banking Advisory Committee Final Report
Discusses the potential value and additional risks of write-access functions such as payment initiation.
Read the reportConsumer-Driven Banking and payments FAQ
Plain-language answers about payment initiation and Canada’s evolving payment framework.
01 Is payment initiation currently available through Consumer-Driven Banking?
Not yet as part of Canada’s regulated Consumer-Driven Banking Framework. The Government has committed to extending the framework to payment initiation by mid-2027.
02 What does write access mean?
Read access allows a service to receive approved financial information. Write access allows an authorized service to initiate an action, such as requesting a payment or managing a product enrolment.
03 Can an application take money without my permission?
Payment initiation is intended to be consumer-authorized. The consumer should review the payment details and authenticate with the appropriate financial institution before the instruction is accepted.
04 Is the Real-Time Rail part of Consumer-Driven Banking?
They are separate but complementary initiatives. Consumer-Driven Banking provides the permission and API framework, while the Real-Time Rail provides infrastructure for exchanging, clearing and settling real-time payments.
05 Will this replace credit and debit cards?
Payment initiation is more likely to add another payment option than immediately replace existing methods. Consumers and merchants may continue choosing among cards, transfers, account-based payments and other services.
06 How could businesses benefit?
Potential benefits include faster payment confirmation, improved cash-flow visibility, automated invoice reconciliation and payment experiences integrated with accounting or commerce platforms.
07 Who will oversee participating providers?
The Bank of Canada administers the Consumer-Driven Banking Framework. Payment service providers may also have obligations under Canada’s retail-payment supervision regime.
View Bank of Canada information