(April 5 – 10:50 ET) – The Canadian Payments Association and e-Scotia are announcing that e-Scotia will host the CPA’s public-key infrastructure root Certification Authority, and provide ongoing operational support for a five-year period. The deal deal should pave the way for growth in Canadian e-commerce.

The CPA and its members are nearing completion of a PKI under which Canadian businesses and consumers will be able to receive digital certificates from participating CPA members for use in Internet-based transactions.

The CPA will accredit member institutions that apply to act as subordinate Certification Authorities within the CPA PKI trust domain.

The CPA will also ensure consistency in the standards applicable to digital certificates issued by participating members, provide a common legal and liability framework for all participants, and seek to cross-certify with other PKI communities, such as the Government of Canada and international initiatives, to extend the usage of these certificates.

Using digital certificates, parties involved in a transaction will have assurance of each other’s identity and of the security of information they exchange, including financial data. Recognition of digital signatures as a legally binding mechanism will act as another catalyst to further the growth of e-commerce in Canada.

“This initiative will help fuel the growth of e-commerce in Canada over the next few years, given its potential to make digital certificates available to virtually all Canadian businesses and consumers through their existing banking relationships with CPA members,” said CPA general manager Bob Hammond. “The CPA’s history in ensuring the safety, security and efficiency of Canada’s payments systems, together with its existing trusted relationships with its members, with government and within the global financial community position us well to take on the role of root CA.”

The CPA root Certification Authority became fully operational in the first quarter of 2001. A proof-of-concept pilot application will be brought on board in the second half of 2001. Accreditation of the first CPA members as subordinate CAs is expected to begin later this year, paving the way for the issuance of certificates to businesses and consumers.

“We are extremely pleased to have been selected by the CPA to host its root CA service. We believe that the CPA initiative will help towards the expanded use of PKI as the way to authenticate and secure transactions in the digital marketplace,” said Drew Brown, senior vice president of business to business products and services, e-Scotia.”