Item - 2025.GG21.18

The General Government Committee recommend that:

1. City Council adopt the City's Payments Modernization Framework, comprising the following strategic policy objectives, aligned with the Digital Infrastructure Strategic Framework, to guide the City's approach to delivering flexible, accessible, and modern payment options:

a. Providing customers choice and convenience through multi-channel options.

b. Providing a consistent and modern payments experience with minimum standards that can be adapted based on Divisional needs.

c. Ensuring a transparent approach for establishing and managing transaction fees.

2. City Council direct the Chief Technology Officer, in consultation with the Executive Director, Customer Experience, and Executive Director, Finance Shared Services, to develop a Payments Modernization Strategy and implementation approach, and report back to the General Government Committee by the fourth quarter of 2025.

3. City Council direct that, the Chief Technology Officer, in consultation with the Executive Director, Customer Experience, and Executive Director, Finance Shared Services, and relevant divisions continue to ensure that City digital payment systems are in alignment with the Digital Infrastructure Strategic Framework to maintain flexibility, strong data privacy and security standards, and protection and ownership of City data.

Torontonians expect convenience and choice when making payments to the City of Toronto. While many customers find paying bills, fees, permits, and fines using digital payment methods easier and more convenient, some prefer making payments by cash or cheques, or through their own financial institutions. As technology and payment trends continue to evolve, the City is comprehensively assessing the different payment solutions offered and considering how to improve the customer experience to serve Toronto's diverse and multi-generational population.

The purpose of this report is firstly to summarize the research conducted and provide an overview of the City's payments landscape. This report also identifies the following policy objectives that form the proposed Payments Modernization Framework, that will guide the City's approach to developing, designing, and implementing its payment strategy:

1. Provide customers choice and convenience through multi-channel options;

2. Provide a consistent and modern payment experience with minimum standards that can be adapted to Divisional needs; and,

3. Ensure a transparent approach for establishing and managing transaction fees.

If adopted, the objectives will guide the evaluation of existing payment options offered by the City, and a strategy for future payment options and processes. Staff will report back to the General Government Committee by the fourth quarter of 2025 with a Payments Modernization Strategy, including a recommended implementation approach, and whether a procurement is needed to enable implementation.