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Canada’s financial technology industry has reached a defining moment as the Bank of Canada officially registered its first cohort of payment service providers (PSPs) under the Retail Payments Activities Act (RPAA), signaling a new era of innovation and regulatory clarity in the country’s payments ecosystem.
Among the 300 newly registered PSPs are prominent names such as Wealthsimple, Koho, Brim Financial, Venn (formerly Vault), Helcim, Trolley, ZayZoon, Zum Rails, and Shopify’s payments division. The registration formally integrates these firms into Canada’s regulated financial infrastructure, granting them direct access to national payment rails — a privilege previously limited to banks and large financial institutions.
“For payments enthusiasts, this is a historic shift,” remarked Abraham Tachjian, former open banking lead for Canada and now Chief Regulatory Affairs Officer at Brim Financial. “This levels the playing field for FinTech companies striving to compete with traditional banks.”
The RPAA, which came into force on September 8, 2025, establishes a national regulatory framework for entities engaged in fund transfers, clearing, settlement, and payment processing. It aims to enhance consumer protection, mitigate operational risk, and ensure the stability of Canada’s fast-evolving payment ecosystem.
According to Saud Aziz, co-founder of Venn, the policy shift marks a turning point for FinTech innovation.
“Previously, we had to depend on banks to access the same rails we were trying to innovate on. With this reform, we can build faster, more efficiently, and compete fairly,” Aziz explained.
The Bank of Canada emphasized that registered PSPs are now required to meet rigorous compliance standards, including robust operational risk management, consumer fund safeguarding, and annual reporting obligations. They must also disclose major incidents and notify the Bank before implementing significant operational changes. Breaches of the RPAA may result in enforcement measures or deregistration.
The framework also opens the door for FinTechs to join Payments Canada and access the upcoming Real-Time Rail (RTR) — the country’s long-anticipated instant payments system, expected to launch in 2026. In parallel, Interac has expanded its e-transfer network to include RPAA-certified PSPs, further deepening FinTech integration into the national payments infrastructure.
“The RPAA provides a solid foundation for protecting consumers’ funds and promoting healthy competition,” said Ron Morrow, Executive Director for Payments, Supervision, and Oversight at the Bank of Canada.
Industry analysts view this development as part of Canada’s broader financial modernization agenda, complementing the country’s ongoing push for open banking and enhanced competition in what many see as an oligopolistic banking landscape. Recent calls from Carolyn Rogers, Senior Deputy Governor of the Bank of Canada, for greater market openness have added momentum to these reforms.
Before the RPAA, FinTech firms dealing in low-value payment transactions operated in a fragmented regulatory space, limiting their growth and legitimacy. With the new framework, they gain formal recognition, regulatory independence, and access to critical financial infrastructure.
“There’s a tangible sense of progress,” Tachjian added. “The Bank of Canada’s engagement with industry players has built real trust. This marks the beginning of a more open, inclusive, and innovative payments ecosystem in Canada.”
The registration milestone represents not only a step forward for Canadian FinTechs but also a key advancement in fostering competition, consumer protection, and digital transformation within the nation’s financial system.
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