The commitment forms part of a new Canada–EU “Alliance for the Future”, under which the two sides will also explore opening their markets to each other’s banks, insurers and fintechs.
Payments Canada has welcomed a commitment from the Government of Canada and the European Union (EU) to work towards connecting Canada’s Real-Time Rail (RTR) with Europe’s instant payment systems.
Leaders agreed the commitment at the 21st Canada–EU Summit, held in Montréal on 29–30 October, where Prime Minister Mark Carney hosted European Council President António Costa and European Commission President Ursula von der Leyen.
The Canada–EU joint statement says the two sides “will also support work toward connecting instant payment systems to facilitate faster, lower-cost and more seamless cross-border transactions, making it easier for Canadians and Europeans to conduct business, invest and transfer funds across the two economies”.
The Prime Minister’s Office (PMO) listed the payments link among measures Canada and the EU will negotiate “over the coming months”. Neither document sets a timeline or names the European system involved.
Payments Canada said the RTR “has been built to international standards, making it internationally extensible”. The system uses the ISO 20022 financial messaging standard, which Payments Canada described as “an essential feature to support interlinking with instant payment systems in other markets”.
“Payments Canada stands ready to engage with the Canadian government, the Bank of Canada and the European Central Bank (ECB) to begin the important work of turning this shared vision into a reality for Canada,” the organisation said.
Payments Canada RTR launch due this quarter
Payments Canada said it will “soon launch” the RTR, which will let individuals and businesses send and receive data-rich payments instantly, 24/7/365. The organisation has targeted a Q4 2026 launch, subject to the completion of industry testing.
The RTR by-law and rules took effect on 24 August after the federal government published them in the Canada Gazette in July. Payments Canada first announced the Real-Time Rail programme in 2016 with a 2019 delivery date, which was later pushed back to 2022, mid-2023 and then 2026.
ECB builds out TIPS links
The European Central Bank (ECB) operates TARGET Instant Payment Settlement (TIPS), the Eurosystem platform which settles instant payments in central bank money. In the Euro-area, payment service providers must now offer instant euro transfers under the EU’s Instant Payments Regulation.
The ECB’s Governing Council moved into the realisation phase of a link between TIPS and India’s Unified Payments Interface (UPI) in November 2025.
It is running an exploratory phase on a link with Switzerland’s SIC IP system through 2026 too, and in September approved a feasibility assessment of a TIPS link with Brazil’s Pix. The Eurosystem is also exploring joining Nexus Global Payments, the multilateral network of instant payment systems initially launched by the Bank for International Settlements (BIS).
The ECB said the programme supports the G20 roadmap for faster, cheaper, more transparent and accessible cross-border payments, but has yet to announce any work on a link with Canada.
This now looks set to change, with the payments commitment announced in Canada one of more than 20 measures proposed at the summit. The PMO listed payment systems among the areas it said now require secure access for national sovereignty.
Canada and the EU will set up a joint working group on market access for banks, insurers and fintech companies, and have concluded negotiations on a Canada–EU Digital Trade Agreement.
Canada is also working towards becoming the EU’s first Associate Member. The EU is Canada’s second-largest trading partner, with goods and services trade worth about C$178bn in 2025.
