FinTech Breakthrough in Canada: Bank of Canada Ushers in New Era with PSP Registrations
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Canada’s financial technology sector has entered a major new phase as the Bank of Canada officially registered its first batch of payment service providers (PSPs) under the Retail Payments Activities Act (RPAA).
Among the first 300 registered entities are leading FinTech firms such as Wealthsimple, Koho, Brim Financial, Venn (formerly Vault), Helcim, Trolley, ZayZoon, Zum Rails, and Shopify’s payments division. The designation makes these firms subject to new operational and reporting requirements while granting them the ability to access payment rails directly an opportunity long reserved for banks.
“For payments nerds, this is huge,” said Abraham Tachjian, Canada’s former open banking lead and current chief regulatory affairs officer at Brim Financial. “This marks a milestone for FinTech firms aiming to compete on a level playing field.”
The RPAA, which took effect on September 8, 2025, creates a national legal framework for entities that hold funds, process transfers, or offer clearing and settlement services. It aims to strengthen oversight and enhance consumer protection in the fast-evolving payments ecosystem.
Saud Aziz, co-founder of Venn, said the change is transformative for FinTech companies. “In the past, we had to partner with banks to access the same rails we were trying to innovate on. This change means we can now build more efficiently and compete fairly,” he said.
The Bank of Canada emphasized that PSPs must meet strict standards for operational risk management and safeguarding consumer funds. They are now required to report annually, disclose any major incidents, and notify the Bank before making significant changes to their services. Violations could result in enforcement actions or deregistration.
The move also paves the way for FinTech firms to join Payments Canada and access the forthcoming Real-Time Rail (RTR) infrastructure, which will enable instant money transfers once launched, likely in 2026. Additionally, Interac recently opened its e-transfer network to RPAA-certified PSPs, further expanding opportunities for participation in Canada’s digital payment ecosystem.
Ron Morrow, the Bank of Canada’s executive director of payments, supervision, and oversight, said the RPAA “provides a solid framework for protecting consumers’ funds and promoting competition.”
Industry observers see the development as part of a larger shift toward modernization and inclusivity in Canada’s financial system. With growing pressure for open banking implementation and remarks from Bank of Canada senior deputy governor Carolyn Rogers calling for greater competition in the “oligopolistic” banking sector, FinTech firms are optimistic that the next federal budget could accelerate reform.
Before the RPAA, FinTech companies handling low-value transactions operated with limited regulatory oversight. The new framework gives them legitimacy, independence, and a clearer path to scaling within Canada’s financial infrastructure.
“There’s a real sense of momentum,” said Tachjian. “The Bank of Canada has done a good job engaging the industry and building trust. This is the beginning of a more open, competitive, and innovative payment landscape.”
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