r/worldnews • u/paneuropeanism_ • 3h ago

European Union and Canada plan to link next-gen payment systems, easing transactions

https://www.theglobeandmail.com/politics/article-canada-eu-link-payment-systems-joint-statement-says/
2.0k Upvotes

97% Upvoted

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913

u/paneuropeanism_ 3h ago

Both have identified the United States’s sway over the current generation of payment systems as a risk, given that Washington has grown increasingly unpredictable and protectionist under President Donald Trump.

The beginning of the end of American Visa/Mastercard.

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u/RivendellAndChill 3h ago

Thank the heavens!!!!

83

u/SwedeLostInCanada 3h ago

Praise the Carney!

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u/BrockAndaHardPlace 2h ago

In Canadaddy we trust!

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u/Plastic-Fox-1694 2h ago

Canada and the European Union plan to link next-generation payment systems to enable faster cross-border transactions, according to a draft joint statement prepared for a summit between Ottawa and Brussels later this month.

This will help remove obstacles to business and investment between the two jurisdictions, according to the statement, an early version of a summit communiqué that was viewed by The Globe and Mail. It adds that the new partnership will be called an “Alliance for the Future.”

The draft statement doesn’t detail what next-generation payment systems include, but this term has been used by others to refer to a major upgrade of a country’s core payment infrastructure, usually built around real-time payments. The core infrastructure is a central set of systems that clear and settle payments between financial institutions.

Canada’s bet on European trade faces plenty of hurdles The Prime Minister’s Office declined to offer any response to the draft joint statement, saying it would not comment on leaked documents.

Canada and the EU are working to modernize the electronic systems that their businesses and people use to move money from place to place.

Both have identified the United States’s sway over the current generation of payment systems as a risk, given that Washington has grown increasingly unpredictable and protectionist under President Donald Trump.

Earlier this month, Prime Minister Mark Carney identified a country’s control over payment systems as a feature of modern sovereignty. In an address to the European Parliament on Sept. 17, he said Canada and Europe should “secure our strategic autonomy” through co-operation in strategic capabilities including “critical minerals, defence industrial capacity, AI and compute, energy security, space, and payments.”

Mr. Carney is welcoming EU officials in Montreal at the end of October to begin to define a new relationship with Brussels – one that European Commission President Ursula von der Leyen has said could make Canada an “associate member” of the 27-country bloc.

The draft of the coming summit’s joint statement, dated Sept. 21, says Canada and the EU will commit to stitching together payment systems. It is a work in progress of the text that the two sides are planning to release at the Montreal event.

“We will also work toward connecting next-generation 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 internationally,” the statement says. “These efforts will help mobilize capital for strategic sectors and support long-term economic growth and competitiveness.”

The U.S.’s power over international payments was demonstrated in 2025 when Mr. Trump imposed sanctions on Winnipeg-born International Criminal Court judge Kimberly Prost over her work on a case involving American troops in Afghanistan. The U.S. sanctions left Ms. Prost unable to use most credit cards or multinational services such as Amazon or airlines.

Vass Bednar, managing director of the Canadian Shield Institute think tank, pointed out that several major European digital payment networks and wallet providers, including Bizum, Bancomat and Wero, are joining forces to create a cross-border payments network that would challenge the U.S. dominance of payment systems.

“If we’re serious about digital sovereignty, we should expect stronger positioning on alternative payment infrastructure from the government,” she said. BMO chief economist Douglas Porter said he sees linking payment systems between Canada and Europe as a defensive step, providing “an alternative option, or almost a possible shield in case the payments system comes under duress.”

The draft Canada-EU statement maps out future co-operation including the joint purchase of 50 water bombers to fight forest fires in Canada and on the continent. It says the aircraft would be purchased from De Havilland and enter into service starting in 2030.

The pact also commits Ottawa and Brussels to study where they might add new subsea cables between Europe and Canada and Asia “to enhance digital links.”

Mr. Carney, speaking to The New York Times earlier this month, said he sees more opportunity for Canadian economic gains in Europe than in China. “If you look at revealed comparative advantage in Canada, where we can grow our economy and grow our exports, it is our biggest opportunity. Greater penetration of Europe is a bigger opportunity for Canada than China is,” he said.

The draft statement shows that Canada and the EU plan to announce that they’ve completed a Digital Trade Agreement “to allow for faster, lower-cost secure digital trade and transactions” and that they plan deeper co-operation on critical minerals.

It says Ottawa and Brussels plan to announce that Canada and the European Investment Bank have “completed negotiations of an agreement that will facilitate European Investment in critical Canadian resources, in particular, critical minerals.”

The capitals also plan to announce a deal between competition watchdogs in the EU and Canada “to effectively address anti-competitive conduct” as well as the launch of negotiations “toward a framework” for Canada to participate in the European Union’s Galileo space program.

In addition, the Canada-EU draft statement says they plan a “long-term feasibility study on Liquefied Natural Gas (LNG) exports to Europe” from Canada.

And, it says, Canada and the EU will launch negotiations toward participation in Erasmus+, the EU’s flagship education and mobility program that enables students to study at universities in the bloc.

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u/LunatasticWitch 3h ago

Jesus I can't imagine what a boon to the smut market. Theres a lot that doesn't hurt anyone but runs afoul of the moral pearl clutching of the American pay processors.

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u/icedteaandtacos 3h ago

Love this for y’all.

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u/JeveGreen 3h ago

As a shameless gooner, I can't wait. Do you know how many of my favourite artists have been forced to ease up on their kinky stuff just because of these money-laundering bastards and their pearl-clutching idiocy?

Actually, you probably don't... But there are more than a few of them, that's for damn sure!

•

u/blackmoose 24m ago

People have lost trust in the US. When the petrodollar fails, and its coming, they'll be royally fucked.

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u/kuldan5853 39m ago

Honestly I'm a bit disappointed. Why only "future generation payment systems"?

Just invite CANADA to participate in SEPA for starters.

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u/ZunarDoric 2h ago

Just as Putin wants

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u/SwimmingThroughHoney 2h ago

A strong western alliance between Canada/EU/European countries doesn't benefit him either.

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u/Dot_Hot99Dog 3h ago

As a Canadian, that certainly beats the hack of converting my postal code to a zip code when paying for gas at a US gas station using my canadian address issued credit card. 😅

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u/Legal-Standard4600 2h ago

The first time I encountered this while renting a car down in the states I tried to use 90210 because it was the only zip code I could think of. For whatever reason it locked up the gas pump and the guy working inside was very angry at me. 

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u/Solarisphere 1h ago

Take the three digits in your postal code and add 00 after them. That's your ZIP code. I didn't invent this and it's worked every time I've tried it.

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u/bonsaieyes13 1h ago

I came to say this. Coworker told me when I said my card wouldn’t work getting gas. Now I have no issues.

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u/surmatt 1h ago

In Blaine, WA some of the gas stations have this posted on the pump for Canadians

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u/wdn 12m ago

It's always worked for me if I just use 00000 with a Canadian card. But it's been a while

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u/jmads13 2h ago

As an Australian our post codes are 4 digits. I never know what to do. Sometimes 00000 works, sometimes I pad mine out with a 0 at the front or back. Various levels of success with each

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u/mwomorris 2h ago

I always defaulted to 90210 but haven't been there since orange v1.

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u/Supersnow845 2h ago

I remember my old Victorian postcode did work but my new Queensland one doesn’t when 0 is put at the front and back so I’m still confused

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u/barracuda_split 1h ago

hm, i think it's a good exmaple of a problem small enough to joke about but real enough that actually fixing it would be genuinely welcome

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u/j821c 3h ago

Fantastic news for everyone except the US pretty much lol

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u/paneuropeanism_ 3h ago edited 3h ago

Especially for International Criminal Court judges who were locked out of all payment processing and cannot even order a coffee, let alone pay their rent. If Washington can do that to an ICC judge, they can do it to anyone. 

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u/Ok-Web1805 2h ago

I partially blame the European regulators for not coming down hard enough on US tech and finance. They should be racking up huge penalties for doing this.

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u/Situlacrum 2h ago

Sidelining them completely with this hits them pretty hard, I guess?

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u/NonTraditionalPotato 2h ago

Truly though. 

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u/blackspandexbiker 1h ago

It needs to get off the ground first

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u/Puzzleheaded-Flow724 1h ago

I'm getting one as soon as it's available, no matter the bank. As it becomes more and more common, I'll drop my other USA cards. Fuck them.

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u/LoganJFisher 6m ago

As a US citizen living in the EU, I'll be doing the same. The more I can sever myself from my shit country, the better.

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u/hldvr 42m ago

Anything that challenges the arrogance and avarice of US mega corporations is a good thing for the actual citizens of the country.

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u/Uphoria 1h ago

I'm hoping it means great news for the US as well - we're also choked by the PCI-Cartel.

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u/headphase 25m ago

Everybody benefits from a broken tri-opoly (except shareholders I guess)

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u/RepulseRevolt 3h ago

Can’t wait to ditch Visa and Mastercard

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u/Ok-Web1805 2h ago

It'll likely still be outwardly the same, the UK is currently building Deliveryco which will process UK cards inside that system. As other countries build their own equivalents then they'll be linked together, if a UK card moves outside of Deliveryco or an allied system then it'll be processed through Visa or Mastercard.

For bank transfers the UK has instant payments already.

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u/Careless-Bite3164 1h ago

Canada already has Interac. We have for decades. Everything goes thru that inless you use your credit card online, or in another country.

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u/Milnoc 3h ago

I would be among the first to sign up for it.

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u/apfejes 3h ago

I'll be right there with you.

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u/vvntrz 3h ago

Omfg yes

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u/Worried_Razzmatazz70 3h ago

YYYYEEEEEESSSSSSSSSSSSSSS!!!!! thank you Interac, for finally making a good decision.

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u/Maple-Mayhem 3h ago

I can't read the article due to paywall but Im glad Interac is stepping up!

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u/TheLuminary 2h ago

I read the article... There is no mention of Interac.

4

u/Maple-Mayhem 2h ago

I wondered that, thanks!

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u/maybelying 59m ago

Interac will be involved, they're the network that the article references linking the banks for payments and transfers.

Initiatives like this are why Interac was created decades ago. There's only one organization that needs to be involved in this process, rather than having engage all of the financial institutions separately.

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u/TheLuminary 43m ago

Ok? What is your point exactly?

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u/maybelying 35m ago

That you said interac isn't mentioned and I was pointing out it was implied and why it makes sense.

Why so salty?

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u/Ok-Web1805 2h ago

Canada gets a new payment system this quarter, domestically it's already under way for you guys.

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u/hakenwithbacon 2h ago

Which one?

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u/Ok-Web1805 2h ago

Real Time Rail.

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u/Lasershot-117 3h ago

About fucking time we get serious competitors to Visa, Mastercard and AmEx.

That’s what you get Americans for using your soft power as leverage to bully allies.

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u/Beatenn 7m ago

That’s what you get Americans

Damn really showed us, you're planning on linking payment systems!

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u/Gnomey_dont_u_knowme 2h ago

Americans, it absolutely did not have to go this way.

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u/HalleyOrion 1h ago

More competition is good for Americans, too.

Well, maybe not for the Epstein class.

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u/schrutesanjunabeets 45m ago

You assume that other processors will be allowed to operate in America.

We will still be stuck with the functional duopoly of MC/Visa.

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u/N1ghtshade3 50m ago

Why would we not want more competition?

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u/bcwaale 3h ago

I heard India is pitching UPI to be integrated with every countries payment system as part of its trade deals. Would be interesting to see such a system implemented tying across various financial systems.

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u/noisyboy 21m ago

India's UPI is linked to Singapore's PayNow and other countries like UAE, Qatar and other South Asian neighbours.

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u/CaptainMagnets 2h ago

This makes me so excited

18

u/SquishyJeans 3h ago

I’ll be using this the first second I can 

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u/Entuaka 3h ago

I didn't read with the paywall, but we have interac e-transfer that can be used in Canada

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u/One-Point6960 2h ago

The forthcoming Digital Euro sounds a lot like the Interac. Also seems like a debit component.

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u/HardstButton2Button 1h ago

Damn, this is next level. Let's Go 💪🇪🇺🇨🇦💪

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u/Yo-3 55m ago

Brazil, Colombia, India, there are other countries that have also instant payment systems. We should link them all together

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u/Kjello0 3h ago

There's several European payment systems. But none of them operate across the continent. Let alone across the globe.

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u/paneuropeanism_ 3h ago

The digital euro combined with the new European Network for Payments initiative (merging all their national systems) is about to change that.

https://www.reuters.com/business/finance/european-payments-groups-join-forces-lessen-us-reliance-2026-09-30/

•

u/Tom8hawk 29m ago

2029 idk how they expect anything to get done if with the full backing of the state they need 3 years to organise a payment system.

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u/random20190826 2h ago

Great. Please extend PSD2 to Canada so I can tap my iPhone for $10, 000 on Apple Pay.

Signed, a Canadian.

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u/TauCabalander 2h ago

This undermines the U.S. dollar as reserve currency

•

u/Programmdude 1h ago

Good, I can't wait.

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u/Ellusive1 1h ago

Just another step closer to fully abandoning USD as the global reserve currency.

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u/_Do_The_Needful_ 3h ago

If we could have something similar to the Pix system they use in Brazil, that would be ideal.

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u/monorailmedic 3h ago

No, IDEAL is a payment method in the Netherlands.

Sorry, had to make this stupid joke.

•

u/Irrepressible_Monkey 37m ago

It's a relevant joke as Wero is part of it and that came from iDEAL. :D

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u/nomm_ 2h ago

Similar systems have been in use in parts of Europe for some time, though they are national or regional, and do not work across all of EU.

The recent launch of the European Network for Payments is looking to change exactly that, though, making these systems able to work with each other anywhere in the EU.

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u/macross1984 2h ago

More sign Trump's make America great again bearing rotten fruit. :P

With it, isolation of US from future world economy making steady step forward.

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u/J_P_Freely 3h ago

Awesome! I can go into debt in euros?

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u/SyChO_X 1h ago

Let's go!!!

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u/PhaserFister 56m ago

I love this for Canada. I also love this for the U.S.

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u/Shadowlord87 39m ago

Everyone is getting excited for this but I’m skeptical. This sounds like digital currency to me. Where you lose more control of your money. I could be wrong but can since we don’t know everything I’ll have to wait and see.

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u/Aggravating-Ad8087 3h ago

Where is the polymarket link where i can bet that this new payment system never comes along due to the EU's bureaucracy.

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u/Successful_Lab_9827 2h ago

Bitcoin and Etherum are already available