Canadian merchants would greatly benefit from a more modernized payments system in the country as a new study revealed this week that delays in processing and a lack of data and transparency in payment messaging create a number of inefficiencies for small, medium and large enterprises.

"The modernization of Canada's payment systems — specifically the introduction of faster, safer and more data-rich payments — will bring highly efficient options to Canadian businesses that will lower operational costs and boost bottom line returns over time," Gerry Gaetz, president and CEO of Payments Canada, said in a press release about the report

Payments Canada partnered with Ernst and Young on the report, which concluded that the introduction of new systems, rules and standards as part of Payments Canada's Modernization program will foster a faster, safer and more data-rich payments environment.

In 2011, the Task Force for Payments Systems Review found that a modernized payments system could save the Canadian economy up to $7.7 billion annually. Supplementary research by Payments Canada in 2015, indicated that the cost savings of adopting the ISO 20022 standard could be upwards of $1 billion annually simply from a reduction in the use of checks.