Central 1 has completed further milestones on the journey towards go-live of Canada’s new high-value payments system, Lynx: a real-time gross settlement system which will replace the existing Large Value Transfer System (LVTS).
It is among 16 confirmed Lynx participants to begin industry testing with Payments Canada in preparation for the switch, this summer, to a new payments system which will process large value, time-critical payments with real-time settlement finality, and provide a safe and secure foundation that supports a dynamic payments environment.
Central 1 has also successfully completed integration testing with Payments Canada for an upgraded solution designed to ensure the continued safety and soundness of the wire payments it processes when Lynx goes live.
As the Group Clearer Manager, Central 1 is a participant on the existing LVTS and acts as the Canadian credit union system’s financial institution connection point to Payments Canada (along with Quebec-based Desjardins, which serves Canada’s Caisses Populaires). Central 1 has a responsibility to deliver payments safely, efficiently and cost-effectively, therefore was required to pass various checkpoints to demonstrate to Payments Canada and the other Lynx financial institution participants that it was ready for industry testing.
“This is the latest step in the work Central 1 is undertaking towards ensuring zero disruption to its wire service during and after the migration to Lynx this summer so that the Canadian credit union system can expect an uninterrupted continuation of their wire payments and settlement of all payments with the Central Bank,” said Central 1 Chief Digital and Payments Officer, Arvind Sharma.
He added: “We are pleased to report that Central 1 and the other Lynx participants began industry testing on January 18 ahead of Lynx Release 1 later this year.
“As Canada prepares for modernized payments, Central 1 has received clear direction and strong support from our Board and our members and clients on our delivery strategy which is designed to position them for growth, innovation, and at the forefront of Canada’s digital payments future.”
Payments Canada President & CEO Tracey Black said: “I would like to take the opportunity to thank Central 1 for their ongoing cooperation and dedication as we work together towards Lynx go-live.”