Canada's payments system in desperate need of change
TORONTO, March 26, 2012 /CNW/ - KPMG advocates for more collaboration in modernizing Canada's payments system or Canada runs the risk of being a less attractive place to do business - a shared point of view with the Task Force for the Payments System Review (TFPSR).
Comprised of industry leaders, the TFPSR has been tasked with reviewing the security, soundness and efficiency of the system across all payment methods and users.
Canada's Minister of Finance, the Hon. Jim Flaherty released the TFPSR's final recommendations on how to modernize Canada's payments system on Friday, March 23, 2012. Key recommendations include:
- The Government of Canada should take charge on making the move away from paper
- Governance procedures need to be consistent, self-regulated and inclusive
- Legacy systems and payments infrastructure require a complete overhaul in order to catch up to global counterparts
The KPMG Perspective
"The report highlights one of Canada's biggest challenges in implementing a new payments system - our dated infrastructure," says Ian Shelley, Partner, IT Advisory at KPMG and Member, Advisory Committee, Canadian Payments Association. "It comes down to who 'foots the bill' for the cost of changing the way Canadians pay - is it the banks, the credit card companies, the government or someone else?"
"There is a huge amount of innovation occurring around payments right now," says Yvon Audette, National Partner-in-Charge, IT Advisory at KPMG. "It's not clear if the current structures and government involvement are allowing payments system innovations to benefit users rapidly."
Recognizing it is a difficult balance between operating and innovating, KPMG identifies additional key considerations as Canada works to modernize its payments system:
- The 'legacy question' should be a priority moving forward - adding new payment methods without removing old ones will only hinder advancements
- The lack of infrastructure and collaboration in Canada stifles innovation in payments systems, making new products difficult to launch
- While electronic and digital payments increase efficiency, they tend to have low adoption today in Canada
- The Task Force for the Payments System Review's final recommendations: Moving Canada into the Digital Age
- KPMG's point of view on mobile payments: Redefining the Value Chain
- KPMG's recent report on the evolution of payments systems in Canada: Mobile Payments: Is Canada Ready?
- Mobile Payments and E-Commerce Considerations as presented by KPMG to the Standing Committee on Industry, Science and Technology, Government of Canada
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Manager, Media Relations, KPMG