City shuts down online payment platform after report suggests misconduct

Toronto City Council says it is developing a new digital payments strategy after an Auditor General report uncovered various operational issues with the system currently used to process traffic tickets, property taxes and utility bills.

The city awarded US technology company PayIt a contract to launch MyToronto Pay, an online payment platform, in 2022.

However, according to the Toronto Star, the software is scheduled to be decommissioned in June 2025 when the current contract expires.

The Auditor General’s report found that the platform fell short of the savings and revenue predicted by its proponents.

“The city has achieved limited savings, operational efficiencies and reduced compliance costs as most pre-existing payment processes and systems remain in place and counter services remain open and hours remain the same as before,” the report said.

It also said that former senior employees agreed to work with PayIt without city council approval and failed to properly inform competitors of the possibility of winning the contract.

Additionally, the findings suggest that the previous city administration dismissed staff concerns about the legality of PayIt’s offer based on Toronto’s unsolicited proposal policy.

The city confirmed to Now that plans to build an improved payment system were already underway.

“A new digital payments strategy is currently being developed and is expected to be presented to the city council in early 2025. If implementation requires vendor support, the city will initiate an open and competitive procurement process,” it said in an emailed statement Wednesday.

Going forward, the Auditor General recommends that local government improve the way it “plans, manages and executes its large, city-wide technology projects” by having a “robust governance framework…clear policies or protocols on departmental responsibilities.” for the Warranty” introduces contract compliance and monitoring of the achievement of the required service levels.”

The city said it noted the audit committee’s recommendation to decommission the MyToronto Pay platform and will follow the audit committee’s and City Council’s guidance in November.