Payments Canada, a financial market infrastructure for payments, is deploying a new credit risk model to boost safety and the soundness of existing systems.It's the first major enhancement on the organization's multiyear payments modernization strategy, according to a press release.

"The retail payment system processes about 28 million transactions each business day. It is our job to ensure those values transfer safely, efficiently and effectively," Gerry Gaetz, president and CEO of Payments Canada, said in the release. "With the continued support and investment of Canadian financial institutions, this is one of many improvements on our modernization journey that will enhance the safety and soundness of the country's payment systems and facilitate future innovation."

The retail system, called the Automated Clearing Settlement System, will be aligned with international best practices and risk management standards. It is where the vast majority of payments in Canada are cleared, including both paper-based and electronic payments.

"Delivering the new ACSS Credit Risk Model is a result of ongoing collaboration and input from our member financial institutions," Jan Pilbauer, executive director of modernization and CIO at Payments Canada, said in the release. "Working closely with our members and the wider payments ecosystem is an integral part of our modernization efforts to ensure that we are meeting the needs of Canadians."