Payments Canada Launches High-value Payment System

Payments Canada has launched the first release of Lynx, a high-value payment system. Lynx is replacing the Large Value Transfer System (LVTS), which has served as Canada’s high-value payment system for over 20 years. Designated by the Bank of Canada as a systemically important payment system under the Payment Clearing and Settlement Act, Lynx will process large value, time-critical payments (i.e. wire payments) with real-time settlement finality and will provide enhanced cyber security and resiliency capabilities. Lynx has been designed with flexibility to support future technologies, including interfaces and APIs. The system will be owned and operated by Payments Canada and overseen by the Bank of Canada. A second release, planned for late 2022, will introduce the ISO 20022 message standard. ISO 20022 allows for data-rich payments, which will support the introduction of new products and services, and the digitization of manual and paper-based processes related to invoicing and payment reconciliation. The introduction of the ISO 20022 message standard will assist Canadian financial institutions in meeting SWIFT’s ISO 20022 global requirements.