Category Archives: Research

Entrepreneurship Programs in Canada for Starting and Growing a Business

October 2, 2026 | NCFA Insight | Entrepreneurship And Startups, Education And Talent, Innovation And Economic Development, Venture Funding And Building

AI illustration of Entrepreneurship Programs in Canada for Starting and Growing a Business

Entrepreneurship Courses, Startup Labs And Founder Programs Across Canada

On September 29, 2026, Okanagan College expanded its entrepreneurship programs with a Start Up Lab, short Entrepreneur's Toolkit courses and a Rural Entrepreneur and Artisan microcredential. The new options focus on practical business needs such as developing an idea, reaching customers, managing growth and turning a skill into income.

Okanagan College is one part of a much larger Canadian entrepreneurship ecosystem. Founders can now choose from university certificates, college courses, incubators, research commercialization programs, startup accelerators and shorter programs that don't require enrolment in a school.

See: Bringing Good Ideas To Life

A founder might learn accounting and business planning in a classroom, spend a semester building a company, work with experienced mentors or pitch for seed funding. Someone turning professional skills into a one person business might prefer a six week program. The useful choice depends less on the school name and more on what the founder needs to accomplish next.

Better prepared entrepreneurs can create value well beyond their own companies. Statistics Canada describes entrepreneurial activity as a driver of innovation, job creation and productivity growth. New businesses also give customers more choice and force established companies to compete. The Bank of Canada links stronger competition with greater efficiency, innovation and faster adoption of technology.

For Canada, producing entrepreneurial talent is only part of the job. Turning talent into productive participation also requires customers, capital, infrastructure and enough opportunity for founders to build here. Entrepreneurship education becomes valuable when people use it to commercialize research, create jobs, challenge incumbents and build businesses that can grow.

Canadian Programs Boost Founders From Ideas To Customers

Several large universities now connect education directly with building companies. The University of Waterloo says its entrepreneurship ecosystem includes more than 45 programs covering courses, mentoring, funding, commercialization and its Velocity incubator. The University of Toronto operates 13 accelerators across three campuses for students, alumni and researchers.

At UBC, the 16 week Venture Founder program works with students building startups and researchers commercializing discoveries. Participants work on customer discovery, market size, business models, financial skills and go to market plans. Simon Fraser University's Charles Chang Institute offers classroom programs alongside startup mentoring, paid entrepreneurial work terms and an incubator for early businesses.

See:  12 Market Entry Approaches for Fintech Startups

The University of Calgary separates different types of founders. Its six month Launchpad program is designed around technology ventures, while its eight week Business Playbook helps people develop traditional businesses such as consultancies, services, shops and product companies.

A researcher deciding whether an invention has customers needs different support from someone opening a local service business. A student with an early software idea has different needs again. The range of programs reflects those differences.

Courses, Incubators And Accelerators Across Canada

The programs below show some of the routes available across Canada. This isn't a ranking or a complete directory. Eligibility, fees and application periods change, so applicants should confirm current requirements directly with each program.

Organization Program Useful for
Okanagan College Start Up Lab, Entrepreneur's Toolkit and rural entrepreneurship microcredential New founders, small business owners and rural entrepreneurs
University of British Columbia Venture Founder Students and researchers validating a venture or commercializing research
Simon Fraser University Chang Institute programs and incubator Students and early founders moving from an idea toward customers and investment
University of Waterloo Courses, Velocity, mentoring and commercialization programs Students and researchers from first exposure through company building
University of Toronto 13 accelerator programs Students, alumni and researchers across technology, science and social ventures
Toronto Metropolitan University Startup School and Zone Learning Aspiring and early founders looking for practical startup education
Queen's University Queen's Founders and Innovators Initiative Founders seeking training, mentoring, workspace and seed funding opportunities
University of Alberta eHUB and Certificate in Innovation and Entrepreneurship Students combining academic study with mentoring and early venture support
University of Calgary Launchpad, Business Playbook and research programs Technology founders, traditional businesses and researchers
University of Saskatchewan Certificate in Entrepreneurship Students and adults seeking a formal entrepreneurship credential
McGill University Dobson startup programs and X-1 Accelerator Founders moving from early validation toward customers, growth and investment
HEC Montréal La base entrepreneuriale Founders from startup through commercialization and growth
Concordia University District 3 Innovation Hub Technology, health and research ventures preparing for customers and financing
Dalhousie University Collide and Lab2Market Students and researchers validating ideas and commercial opportunities
Memorial University Memorial Centre for Entrepreneurship and Navigate Students, researchers and community founders seeking coaching and startup support
NEXT Canada NEXT 36, NEXT AI and NEXT Founders Aspiring founders, AI entrepreneurs and founders building growth companies
Venture for Canada Solopreneurship People turning skills, services or expertise into an independent business
Futurpreneur Canada Core Startup Program Entrepreneurs aged 18 to 39 seeking financing, mentoring and business support

Match The Program To The Business Stage

The program that looks most impressive on paper isn't necessarily the one that solves a founder's immediate problem. Someone without an idea may need basic business skills and exposure to entrepreneurship. Someone with an idea needs customer discovery and evidence that people will pay. A company already making sales may get more value from experienced mentors, financing contacts and help entering new markets.

Programs outside universities widen those choices. NEXT Canada divides its offering between students and recent graduates, AI ventures and companies that are further along. Venture for Canada's six week Solopreneurship program costs $499 for its first cohort and focuses on validating an offer, finding customers, setting prices and using AI to help operate a small business. Futurpreneur goes further into execution by combining up to $75,000 in startup loan financing with up to two years of mentoring for eligible entrepreneurs aged 18 to 39.

Training can help a founder reach customers and build a stronger company, but it doesn't remove the financing problem. With Canada's early stage startup funding funnel narrowing, programs that connect founders with customers, investors and operating experience can be more useful than education alone.

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Some programs make that connection directly. Queen's participants can pitch for seed funding. Calgary's Launchpad provides eligible teams with project funding and ends with a pitch competition. UBC connects founders with mentors, industry contacts and investors. FrontFundr's Back The Next Canadian Startup Challenge offers another route once a company is ready to raise.

Okanagan College's expansion is useful because it recognizes that entrepreneurship doesn't belong to one type of founder. A rural artisan building a small business, a university researcher commercializing intellectual property and a software founder preparing to raise capital are all entrepreneurs, but they shouldn't be pushed through the same program.

Talking Point

Canada doesn't need more entrepreneurship courses for their own sake. It needs more people able to turn ideas, research and skills into viable businesses. When programs help founders reach customers, compete and grow, the value extends beyond the participant through new jobs, new products, stronger competition and, at scale, higher productivity.

The measure isn't how many programs exist. It's what founders build after taking part.


NCFA Canada logoThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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C:\>DIR Hackathon 2026 Winners Put Agentic AI to Work

September 30, 2026 | NCFA Market Activity | Artificial Intelligence And Data, Risk Compliance And Regtech, Cybersecurity And Fraud, Digital Identity And Trust, Payments And Money Movement, Digital Assets Blockchain And Tokenization

C_DIR Global Agentic Regulator Hackathon 2026 final round and winners

Agentic AI Hackathon Winners, Financial Supervision And The Next RegTech Layer

On September 30, 2026, the C:\>DIR Global ‘Agentic Regulator’ Hackathon announced its 2026 winners and finalist demos after attracting 942 individual builders and 336 team submissions from more than 65 countries. Thirty six teams reached the final prototype round, including 19 from or affiliated with regulatory authorities, with projects covering market manipulation, fraud, agentic payments, smart contracts, AI advice and digital identity.

NCFA supported the inaugural hackathon as an Ecosystem Partner. What makes the results notable is that both regulators and builders spent a week turning emerging questions around autonomous financial systems into working prototypes.

Every finalist submitted code or a working application for assessment. 260 verified regulators and policymakers from more than 80 institutions across 40+ countries then selected the Final 6, which presented their solutions to 18 senior global regulatory leaders at the C:\>DIR Summit in Cambridge.

The primary question propelling the competition was how do regulators supervise software that can act?

Market Risk, Fraud and Agentic Payments Winners

1. 🥇 Team Pheonix, Securities and Exchange Board of India (SEBI), won first place for its work on market manipulation, agentic herding and financial stability. Its digital twins and trading agents are designed to let authorities "pressure test" proposed regulations in a synthetic securities market before they take effect.

2. 🥈 YU-SAM POWER, University College London, took second place with an agentic framework for assessing smart contract risk and identifying attacks, supporting more consistent enforcement and international collaboration.

3. 🥉 Rwanda Anti-Scam Team, with participants from the National Bank of Rwanda, Bank of Namibia, Proto, FNA, GLEIF and the University of Manchester, placed third with a system that uses agents to report and recover funds lost through fraud and scams in instant payment environments.

4. Team Axiom, from the State Bank of Pakistan, placed fourth with a supervisory intelligence system for agentic payments designed to identify systemic risks including agentic herding.

5. Agent Reliability Profile, from the MLCommons Financial Services Working Group, placed fifth with a standardized, testable reliability label for AI agents. Its central question is straightforward. Can an AI agent be trusted?

6. Probe, from the UK, placed sixth with a regulatory tool that uses an “Adversary” agent posing as realistic customers and a “Judge” agent to run thousands of test conversations against AI advice systems and flag potential regulatory breaches.

The vouch.finance Award went to Legis Labs, whose Agent Passport gives banks a way to check an AI agent's authority before a payment executes. Project Zeus, from the Dominican Republic's securities regulator SIMV, received an Honorary Award for a human governed, multi agent approach to detecting investment scams, engaging suspected scammers and gathering evidence for enforcement.

The six finalists shared recognition from a US$100,000 total prize pool. The Final 6 were also given an opportunity to demonstrate their work at the Singapore FinTech Festival.

Agent Identity Is Becoming a Financial Control

The projects tackled different problems, but several requirements kept appearing.

If an AI agent sends money, a financial institution needs to know which agent acted, who authorized it and whether the action stayed within that authority. If multiple trading agents begin behaving alike, supervisors need visibility into whether that behaviour is creating market risk. If an AI adviser gives unsuitable guidance, there needs to be an auditable record of what happened and where human oversight applied.

That helps explain why agent identity, traceability, auditability, human oversight and pre execution controls feature across so many of the finalist projects.

These aren't abstract governance principles once agents start touching payments, markets or regulated advice. They become operating requirements.

The six challenge areas made the same point from different directions:

  • AI driven fraud and scams
  • Agentic payments and commerce
  • Decentralized market infrastructure and smart contracts
  • Know Your Agent and digital verification
  • Market manipulation and agentic herding
  • AI enabled financial and high stakes advice

A New RegTech Layer Is Starting to Emerge

The commercial question is what happens after the prototype.

Putting these systems into production will require real data, cybersecurity controls, privacy safeguards, legal authority, model governance, procurement and integration with existing supervisory infrastructure. Cross border applications add another layer because an agent may operate across multiple firms, payment systems and jurisdictions.

That's where the opportunity becomes more interesting.

RegTech has traditionally focused on helping financial institutions interpret rules, monitor activity and demonstrate compliance. Agentic supervision creates another market for technology that helps regulators simulate markets, verify AI agents, monitor autonomous activity, test financial advice and investigate fraud.

Canada already has active policy and infrastructure work across AI, payments, digital identity, fraud and financial market oversight. Canadian fintech and RegTech companies working in these areas should be watching which of these prototypes move into pilots, standards or production environments.

NCFA covered the launch of the C:\>DIR Agentic Regulator Hackathon in July. The winners now provide an early view of what builders and regulators chose to build when given a defined supervisory problem, sandbox environments and a week to produce working solutions.

Strategic Takeaway

The interesting result isn't simply that regulators used AI at a hackathon. It's what they built.

They built systems to test markets, identify fraud, verify agent authority, monitor payments, assess smart contract risk and scrutinize AI generated advice.

As financial systems add more autonomous actors, the supervisory layer will have to become more capable too.

Agentic finance may require agentic supervision. The C:\>DIR Hackathon has now put some early working examples on the table.

Explore: C:\>DIR Hackathon 2026 winners, presentations and demos

Read: Official C:\>DIR Global Agentic Regulator Hackathon winners announcement


NCFA Canada logoThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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NCFA Weekly Fintech Intelligence Sep 19-25, 2026

Sep 19, 2026 | Last Updated Sep 25, 2026 | Artificial Intelligence And Data, Cybersecurity Fraud And Financial Crime, Regulation And Policy, Payments Infrastructure And Money Movement, Digital Banking And BaaS, Lending Consumer Credit And BNPL, SME Finance And Business Banking, Treasury Liquidity And Cash Management, Wealthtech Investing And Trading, Capital Markets Infrastructure And Funding, Data Privacy And Governance

Fintech market intelligence data visualization signals

] Image: Freepik

This live weekly NCFA intelligence page tracks financial technology developments that significantly affect how fintechs build, sell, raise capital, and operate under scrutiny. Coverage prioritizes Canada and includes global events that directly influence competitive conditions, market access, and execution realities across fintech sectors. This page will be updated throughout the week with market movers in a live format and then each week we'll close the prior week's contents in prep for the upcoming week, and continue on a rolling basis. (Missed prior week's Fintech Whisperer? (December 6-12, 2025, December 13-19, 2025, January 1-9, 2026, January 10-16, 2026, January 17-23, 2026, January 24-30, 2026, January 31-February 6, 2026, February 7-13, 2026, February 14-20, 2026, February 21-27, 2026, February 28-March 6, 2026, March 7-13, 2026, March 14-20, 2026, March 21-27, 2026, March 28-April 3, 2026, April 4-10, 2026, April 11-17, 2026, April 18-24, 2026, April 25-May 1, 2026, May 2-8, 2026, May 9-15, 2026, May 16-22, 2026, May 23-29, 2026, May 30-June 5, 2026, June 6-12, 2026, June 13-19, 2026, June 20-26, 2026, June 27-July 3, 2026, July 4-July 10, 2026, July 11-July 17, 2026, July 18-24, 2026, July 25-July 31 2026, August 1-August 7, 2026, August 8-August 14, 2026, August 15-August 21, 2026, August 22-August 28, 2026, August 29-September 4, 2026, September 5-September 11, 2026, September 12-September 18, 2026).

Weekly Fintech Market Intelligence Sep 19 - Sep 25, 2026

Artificial Intelligence And Data

OneVest Launches Agentic Account Opening for Canadian Wealth Firms

September 23, 2026, Canada
  • OneVest launched an AI agent that manages the wealth account onboarding lifecycle from initial client intake through account funding while keeping advisors and operations teams in control.
  • The agent connects with National Bank Independent Network, Aviso Wealth and CI Investment Services, with additional custodial integrations underway.
  • Every action is logged through OneVest Pulse, providing operations and compliance teams with an audit trail and real time visibility. The capability is available now to OneVest's Canadian financial institution, wealth enterprise and advisor clients.

Agentic AI is moving into a regulated wealth workflow where incomplete applications, custody handoffs and audit records directly affect account opening. Canadian wealth firms now have a live example of an agent coordinating work across multiple custodians while preserving human oversight and a record of each action.

Form3 Launches AI Agentic Payments Infrastructure

September 23, 2026, Global
  • Form3 launched an AI enabled payments platform designed to let banks and fintechs use authorized AI agents within payment operations.
  • The first phase uses a Model Context Protocol adaptor that makes payment information available to authorized AI applications while keeping agents outside the payment flow.
  • The initial agent access is read only and cannot initiate changes. Form3 says the new AI layer remains subject to the platform's existing data and security controls.

Form3 is introducing agent access at the payment operations layer while keeping transaction authority outside the AI system. Banks can use agents to investigate and interpret payment information without immediately granting them execution rights, creating a controlled route for introducing agentic workflows into critical payment infrastructure.

New York Starts RAISE Act Registration for Frontier AI Developers

September 21, 2026, New York, United States
  • New York will begin directing large frontier AI developers to register with the state in November as implementation of the Responsible AI Safety and Education Act moves into its compliance phase.
  • The RAISE Act requires covered developers to publish safety and transparency policies, report critical safety incidents to the DIGIT Office within 72 hours and file quarterly assessments of catastrophic risks.
  • From January 1, 2027, covered developers must register with DIGIT, file recurring disclosure statements and pay regulatory assessments. The DIGIT Office sits within the New York State Department of Financial Services.

Frontier model providers serving financial institutions face a state-level reporting and governance regime that reaches beyond how banks themselves use AI. Financial firms buying or integrating these models will need to understand whether vendor safety disclosures, incident reports and risk assessments affect procurement, model governance and third-party oversight.

Cybersecurity Fraud And Financial Crime

Bitget Suspends Withdrawals After US$351.6M Wallet Breach

September 24, 2026, Global
  • Bitget detected unauthorized transfers from some hot wallets at 18:31 UTC and estimated affected funds at approximately US$351.6 million.
  • The exchange said the breach was contained to part of its hot and warm wallet layers, while cold wallets remained secure and deposits and trading continued operating.
  • Withdrawals were temporarily suspended during the security review. Bitget said its User Protection Fund held more than US$464 million and covered the platform loss.

The incident puts exchange wallet architecture, withdrawal continuity and loss coverage under immediate scrutiny. Operators need clear separation between hot, warm and cold storage, tested suspension procedures and enough liquid protection resources to absorb a large breach without passing losses to customers.

FCA Raises Expectations for Money Mule Controls

September 23, 2026, United Kingdom
  • The FCA surveyed 35 regulated firms and found 238,396 suspected mule accounts were closed in 2025, up from 184,935 in 2023.
  • A public private working group with 22 regulated firms traced 140 fraud cases and found cashing out was concentrated mainly between the second and fifth mule accounts.
  • The FCA says firms should review and strengthen detection and disruption controls where necessary, consider linked accounts and transaction context, use available information sharing provisions and adapt to changing cash out patterns. Supervisory monitoring will continue.

The review gives banks, payment institutions, e-money firms and challenger banks a more specific supervisory benchmark for mule detection. Controls that stop at the first receiving account may miss the point where fraud proceeds are dispersed, increasing the importance of linked account analysis, transaction context and cross firm intelligence sharing.

AAIB Deploys IBM Safer Payments for Fraud Prevention

September 23, 2026, Egypt
  • Arab African International Bank implemented and deployed IBM Safer Payments as part of its digital payments fraud prevention program with IBM and TECH-HUB.
  • The bank reports lower fraud related losses, improved identification of suspicious transactions, fewer false alerts and better operating efficiency following deployment.
  • The platform strengthens real time fraud detection and risk controls across AAIB's digital payment environment.

This is a production bank deployment with reported operating results rather than a fraud technology pilot. Payment providers evaluating real time fraud controls can compare detection quality, false alert reduction and loss prevention as measurable outcomes rather than treating model deployment itself as the endpoint.

Regulation And Policy

Bank of England Proceeds With UK Leverage Ratio Reforms

September 25, 2026, United Kingdom
  • The Bank of England's Financial Policy Committee agreed to proceed with proposed leverage ratio reforms first set out earlier in 2026, with consultation expected in early 2027.
  • The FPC estimates the proposed changes could increase leverage capacity at UK banks with significant market activity by about 5% from current levels if other constraints and demand allow that capacity to be used.
  • The Committee linked the additional capacity to further work on gilt repo resilience, including possible greater central clearing or minimum haircuts, while keeping the option to raise the general leverage ratio buffer above 25 basis points if risks increase.

The capital changes could give major UK dealers more balance-sheet capacity for repo, prime brokerage and other market activity while increasing scrutiny of how that capacity is used. Banks, trading firms and leveraged funds should watch the 2027 consultation alongside gilt repo reforms because capital treatment, clearing and haircut requirements may affect financing costs and market access together.

Kenya Opens Consultation on National Payment System Overhaul

September 25, 2026, Kenya
  • The National Treasury and Central Bank of Kenya published a draft National Payment System Policy and National Payment System Bill, 2026 for public consultation.
  • The proposed bill would repeal the existing National Payment System Act and establish updated rules covering payment system and provider oversight, interoperability, competition, consumer and data protection and financial stability.
  • Public comments are due October 9, 2026, with consultation forums scheduled across Kenya from September 28 through October 9.

Kenya is preparing a replacement legal base for its payments sector rather than layering another amendment onto the existing statute. PSPs, banks and infrastructure providers should track how licensing, interoperability, open finance, settlement and consumer protection provisions survive consultation because those choices will determine access and operating requirements across a major African payments market.

SEC Clarifies Crypto Token Buybacks, Staking and Howey Boundaries

September 25, 2026, United States
  • The SEC Division of Corporation Finance issued crypto asset FAQs covering token buybacks, staking receipt tokens, functionality and decentralization, marketing claims, protocol development and when secondary trading platforms may be treated as promoters.
  • For a functional crypto system with no central party, staff says announcing a non-security crypto asset buyback would not constitute a promise of essential managerial efforts. For a system that is not functional, a buyback could affect the Howey analysis when it is promoted as creating yield or returns for token holders.
  • The guidance also says ongoing security, maintenance, upgrades and efforts to grow network effects after a crypto system becomes functional do not themselves constitute essential managerial efforts, while certain staking receipt tokens may qualify as digital tools or digital commodities depending on their structure.

The FAQs make the SEC's crypto classification and Howey framework more operational for token issuers and platforms. Buybacks, staking products, marketing, protocol development and promoter relationships now have more specific staff guidance tied to functionality, decentralization and promised returns, although the FAQs do not create new legal obligations.

Federal Reserve Proposes GENIUS Act Stablecoin Rules

September 24, 2026, United States
  • The Federal Reserve requested comment on two proposals establishing a regulatory regime for Board supervised payment stablecoin issuers under the GENIUS Act.
  • The first proposal covers permissible reserve assets, standardized capital requirements, risk management, reserve safekeeping and permissible stablecoin activities for Board supervised banks.
  • The second would create a tailored application process for Board supervised banks seeking approval to issue payment stablecoins. Comments close 60 days after Federal Register publication.

The U.S. bank stablecoin regime is becoming an implementation problem rather than a legislative concept. Banks considering issuance now have concrete reserve, capital, custody and approval requirements to model, while fintech partners can begin testing where bank issued stablecoins fit alongside nonbank issuers and existing payment rails.

FCA Finalizes Crypto Fees, Fund ETN Access and Promotion Rules

September 24, 2026, United Kingdom
  • The FCA approved additional rules for the UK's incoming crypto regime, including application and periodic fees for regulated cryptoasset activities and changes tied to the cryptoasset market abuse regime.
  • Authorized retail funds can hold cryptoasset exchange traded notes up to 10% of scheme property under changes effective September 28, while most notifications for approvals of cryptoasset financial promotions are removed from October 1.
  • Crypto application fee provisions take effect September 30, ahead of the authorization gateway opening, while additional periodic fee and market abuse provisions apply when the full regime begins on October 25, 2027.

Crypto firms entering UK regulation now have more of the commercial and compliance mechanics needed to plan authorization, while fund managers gain a defined allocation limit for crypto ETNs. Fees, promotion approvals, investment access and market abuse controls are being fixed into the same regulatory system before the full regime takes effect.

CFTC Updates Crypto and Blockchain Compliance FAQs

September 24, 2026, United States
  • CFTC staff updated regulatory FAQs covering registrants and registered entities that use crypto assets and blockchain technology.
  • The revisions address investments of customer funds in tokenized forms of otherwise permitted investments.
  • The FAQs also address use of blockchain technology to satisfy registrant recordkeeping requirements, extending earlier CFTC guidance on tokenized collateral and digital assets used as margin.

Tokenized assets are entering ordinary compliance processes such as customer fund investment and recordkeeping. Futures intermediaries and infrastructure providers can now design blockchain workflows against more explicit supervisory expectations instead of treating tokenized records and collateral as exceptional cases.

ASIC Tightens Controls for Algorithmic and AI Trading

September 24, 2026, Australia
  • ASIC amended securities and futures Market Integrity Rules to modernize trading system obligations for algorithmic trading, including AI and machine learning systems.
  • The amendments strengthen requirements for testing, monitoring and governance and clarify false or misleading trading where automated activity creates a misleading market appearance.
  • The rules take effect in 2028 after an 18 month transition. ASIC is also consulting on updated implementation guidance, with submissions due November 5, 2026.

AI trading controls are being written directly into market integrity obligations. Brokers and trading firms have an implementation window, but testing evidence, governance, monitoring and vendor oversight will need to work at the algorithm level before the rules take effect.

Uzbekistan Approves National FinTech Strategy Through 2030

September 24, 2026, Uzbekistan
  • The Central Bank of Uzbekistan approved a National FinTech Strategy for 2026 through 2030 focused on financial technology development, supervision and regional integration.
  • Planned initiatives include an Innovation Hub, Regulatory Sandbox 2.0, Open Banking and Open Finance, open API standards, digital identity infrastructure and stronger regional payment connectivity.
  • Implementation is phased through 2030 and includes payment modernization, interoperability and AI experimentation alongside expansion of shared digital infrastructure.

Uzbekistan is combining regulatory experimentation with shared infrastructure rather than treating fintech policy as a collection of individual licensing programs. Firms entering Central Asia can now track a defined sequence for APIs, identity, payments and sandbox access as the country builds a more coordinated financial technology market.

Cambodia Regulators Formalize Virtual Asset Oversight

September 23, 2026, Cambodia
  • The Securities and Exchange Regulator of Cambodia and National Bank of Cambodia issued a joint statement on management of virtual assets and virtual asset service providers.
  • The statement establishes a coordinated regulatory route for virtual asset activity while Cambodia continues drafting dedicated digital asset legislation.
  • The initiative follows earlier Cambodian work on licensing, AML and enforcement provisions for virtual asset service providers and comes as regulators prepare a fuller digital asset law.

Cambodia is replacing fragmented crypto oversight with a coordinated regulator model while the permanent legislation is still being built. Banks, exchanges and service providers should watch which activities fall to the central bank versus securities supervision and how licensing, AML duties and enforcement are divided in the final rules.

ESMA Makes AI and Tokenisation a 2027 Supervisory Priority

September 23, 2026, European Union
  • ESMA will launch a new Union Strategic Supervisory Priority on digital innovation from 2027, directing supervisory attention across ESMA and national competent authorities.
  • The initial focus will be how supervised firms use artificial intelligence and tokenisation, with the priority designed to build supervisory expertise and capacity around new technologies.
  • The new priority will run alongside ESMA's existing cyber and operational resilience priority and can expand to other technologies as risks develop.

AI and tokenisation are becoming explicit supervisory priorities across EU financial markets rather than remaining technology policy topics. Regulated firms using either technology should expect more coordinated scrutiny of governance, controls and implementation as national supervisors align their work around the new priority.

CFTC Sets Listing Expectations for Mention Markets

September 22, 2026, United States
  • The CFTC's Division of Market Oversight issued an advisory covering event contracts based on whether a person says specified words, appears at an event or interacts with another person.
  • The advisory identifies heightened manipulation risk because settlement can depend on conduct that may not be independently generated or externally verifiable.
  • It describes limited circumstances in which the contracts may be listed and gives designated contract markets factors to consider under Commission Regulations 40.2 and 40.3.

Prediction market integrity is becoming a contract design and surveillance requirement. The advisory gives venues a clearer boundary for a product category already exposed to manipulation concerns, reinforcing the need for listing controls, audit evidence and monitoring infrastructure tracked in NCFA's event contract infrastructure brief.

EDPB Sets Five-Step GDPR Fine Method and Finalizes DSA Privacy Guidance

September 21, 2026, European Union
  • The European Data Protection Board adopted a five-step methodology for deciding whether an administrative fine should be imposed under the GDPR, including liability, intent or negligence, aggravating and mitigating factors, and whether a fine is effective, proportionate and dissuasive.
  • For non-minor infringements, the methodology creates a strong presumption that a fine should be imposed, while minor infringements will generally result in no fine and may instead receive a reprimand.
  • The EDPB also adopted the final version of its guidelines on the interaction between the Digital Services Act and GDPR where intermediary services process personal data. The fining guidelines remain open for public consultation until November 13, 2026.

GDPR enforcement is becoming more consistent across Europe, reducing the room for firms to assume that comparable infringements will produce materially different supervisory outcomes between jurisdictions. Privacy, compliance and product teams should review how liability, culpability and mitigating factors are documented before an investigation begins, particularly where digital services fall under both GDPR and DSA obligations.

Payments Infrastructure And Money Movement

Solaris Takes SEPA Instant Payments Live on ACI Connetic

September 24, 2026, Germany / Europe
  • Solaris went live with SEPA Instant payments on ACI Connetic as part of the licensed German bank's payments modernization program.
  • The platform combines payments processing, fraud prevention, payment intelligence and orchestration in one cloud architecture.
  • Solaris provides accounts, cards, lending and payments infrastructure to fintechs, digital brands and multinational companies that embed financial services into customer products.

Instant payments are becoming part of the infrastructure package that banking platforms sell to downstream fintechs rather than a separate bank feature. Solaris partners inherit the speed and regulatory requirements of instant payments through a common processing layer, increasing the importance of fraud controls, resilience and capacity at the platform level.

UK Banks Complete Live Tokenised Sterling Deposit Transactions

September 24, 2026, United Kingdom
  • Barclays, HSBC UK, Lloyds Banking Group, Monzo, Nationwide, NatWest and Santander completed the first live customer transactions using tokenised sterling deposits through the Great British Tokenised Deposit initiative.
  • The live transactions included two remortgage completions and a consumer marketplace payment, using programmable commercial bank money to lock and release funds when agreed conditions were met.
  • The transactions ran on shared infrastructure developed by Quant. Further pilots are planned for digital asset settlement using tokenised customer money alongside digital debt instruments.

Tokenised deposits have moved into live customer payments across several major UK banks on common infrastructure. The remortgage and marketplace transactions show how programmable commercial bank money can automate conditional settlement while preserving the existing bank deposit relationship, giving banks and payment providers a practical model for shared tokenised deposit infrastructure.

The Clearing House Selects Quant for Tokenized Deposit Network

September 24, 2026, United States
  • The Clearing House selected Quant to provide the interoperability, orchestration and transaction management layer for its On-Chain Money Initiative, a planned tokenized deposit clearing and settlement network for U.S. financial institutions.
  • The network is designed to connect tokenized deposit transactions with existing fiat payment systems, including the RTP and CHIPS networks, and support programmable and immediate settlement.
  • The Clearing House expects the network to become available to participating financial institutions in the first half of 2027. Its existing payment networks clear and settle more than US$2 trillion each day.

The Clearing House is putting a technology layer behind a bank led U.S. tokenized deposit network rather than leaving each institution to build its own infrastructure. Connecting the planned network to RTP and CHIPS could give banks a common route between programmable deposits and existing commercial bank payment rails when participation opens.

Bank of Algeria Authorizes Djezzy Payment Services Formation

September 23, 2026, Algeria
  • The Monetary and Banking Council authorized Djezzy Payment Services, a subsidiary of Optimum Telecom Algérie, to establish itself as a payment service provider.
  • The authorization was granted under Regulation 25-02 governing the establishment, licensing and activities of payment service providers.
  • Djezzy Payment Services must submit a separate application for final accreditation to the Bank of Algeria within 12 months of receiving the establishment authorization.

Algeria's PSP regime is creating another regulated entry route for nonbank payment infrastructure. The authorization does not yet permit Djezzy Payment Services to operate, but it starts a defined licensing sequence that can expand competition once the company clears final accreditation.

Reap and Visa Expand Stablecoin Card Programs to 100+ Markets

September 23, 2026, Global
  • Reap and Visa announced a collaboration to support stablecoin linked Visa credit card programs across more than 100 markets using Reap's issuance infrastructure.
  • The expansion takes Reap's card infrastructure beyond Asia and Latin America into Europe, the Middle East and Africa, with authorization, processing, compliance frameworks and operations handled through the platform.
  • Programs can use stablecoins for funding, collateral and repayment, while Reap also participates in Visa's Asia Pacific stablecoin settlement program and settles obligations directly with Visa using stablecoins.

Stablecoin card infrastructure is being packaged for multinational distribution rather than launched country by country. Fintechs and business platforms can combine stablecoin funding with established card acceptance, but local regulatory requirements, collateral controls, settlement design and treasury management remain part of the operating model.

Six Canadian Banks Explore Shared CAD Tokenized Deposits

September 22, 2026, Canada
  • BMO, CIBC, National Bank, RBC, Scotiabank and TD are jointly exploring Canadian dollar digital money solutions, beginning with a tokenized deposit initiative.
  • The first phase aims to move tokenized deposits efficiently between Canadian financial institutions, with a longer term goal of connecting to other digital asset initiatives.
  • The banks say the project is intended to support faster, more efficient and programmable payments while preserving safety, stability and regulatory oversight. Other deposit taking institutions may be added later.

Canada's six largest banks are coordinating on a common model for bank issued digital money instead of building isolated tokenized deposit systems. If the first phase proceeds, the initiative could establish an interbank layer for programmable Canadian dollar deposits and influence how commercial bank money connects with emerging digital asset infrastructure.

SoFi Takes SoFiUSD Card Settlement Live With Mastercard

September 22, 2026, United States
  • SoFi Bank and Mastercard made SoFiUSD settlement live across SoFi Bank's debit and credit card program, moving the capability announced in March into production.
  • SoFi Bank is migrating its entire card program, expected to process more than US$25 billion in annualized volume, to settlement using SoFiUSD. Transactions are already live on blockchain.
  • SoFiUSD is issued by OCC regulated SoFi Bank and is redeemable 1:1 for U.S. dollars. Merchants do not need to hold the stablecoin or build separate blockchain infrastructure to receive settlement funds through SoFi Bank.

Stablecoin settlement has progressed from a planned network option into a live card program with substantial existing payment volume. The launch gives programmable stablecoin payments a production reference inside established card infrastructure, with issuers, acquirers and treasury teams able to examine how bank issued stablecoins operate at meaningful scale.

GoCardless Takes Agentic Account to Account Payment Live in UK

September 22, 2026, United Kingdom
  • GoCardless processed an agentic account to account transaction in the UK through an AI driven recurring donation experience for Trussell.
  • The transaction was completed inside an AI conversation. After the donor selected a monthly donation amount, the agent collected bank details and established a Direct Debit mandate on the donor's behalf.
  • GoCardless developed and launched the payment flow within the FCA's AI Live Testing programme, and the donation experience is now live on the company's website.

Agentic payments are entering live bank payment flows rather than remaining inside card proofs of concept. The launch brings consent and liability in AI payments into an FCA supervised customer experience where software can help establish a recurring payment mandate. Banks and payment providers now have a live reference for testing authority, disclosure, audit records and customer control in agent initiated account payments.

BLIK Goes Live for mBank Customers in Slovakia

September 21, 2026, Slovakia
  • The first mBank customers in Slovakia can now use BLIK directly in the bank's mobile app, with access scheduled to expand to all mBank customers on October 1.
  • mBank is the second bank in Slovakia to offer BLIK after Tatra banka, expanding the payment system's distribution through Slovak banking apps.
  • For ecommerce purchases, customers generate a six digit BLIK code in the mBank app, enter it at checkout and confirm the transaction inside the banking app.

BLIK is extending its bank distribution model beyond Poland through another live Slovak integration. Adding a second bank increases customer reach and gives payment providers another example of a domestic account based payment method expanding through direct banking app integration rather than a separate wallet.

Digital Banking And BaaS

Revolut Gets Approval to Acquire Banco Cetelem Argentina

September 24, 2026, Argentina
  • Revolut received Central Bank of Argentina approval to acquire Banco Cetelem Argentina from BNP Paribas Personal Finance.
  • After completion, the institution is expected to become Revolut Bank Argentina S.A.U. and operate as a regulated bank while it prepares for a later public launch.
  • Revolut says more than 150,000 consumers have joined its Argentina waitlist. The company still has local regulatory, capital and operating requirements to complete before customer launch.

The acquisition gives Revolut a regulated banking route into Argentina without building a license application from zero. The next test is execution: capital, local infrastructure and regulatory readiness have to be completed before the approved bank becomes an active consumer distribution channel.

BSP Sets ₱1 Billion Capital Floor for Digital-Centric Banks

September 21, 2026, Philippines
  • Bangko Sentral ng Pilipinas issued Circular No. 1240 requiring thrift, rural and cooperative banks operating with a business model similar to a digital bank to meet the ₱1 billion minimum capital requirement applied to digital banks.
  • Existing banks identified by BSP as digital-centric have six months from receipt of notice to comply with the prudential requirements.
  • An acquisition intended to convert a thrift, rural or cooperative bank into a technology-driven banking model must meet the ₱1 billion capital requirement at application and comply with prudential standards applicable to digital banks.

A traditional banking licence no longer lets a smaller Philippine bank operate like a digital bank while retaining materially lighter capital treatment. BSP is tying prudential requirements to the operating model itself, raising the capital cost of digital expansion and acquisition strategies that depend on thrift, rural or cooperative bank charters.

Lending Consumer Credit And BNPL

RedotPay Secures First Two U.S. State Lending Licenses

September 23, 2026, United States
  • Red Dot Lending (US), LLC received a Regulated Lender License in Idaho and an Installment Loan Company License in Nebraska.
  • The licenses would allow the company to offer certain lending products in those states after its planned U.S. launch.
  • RedotPay says more than 20 additional state license applications are underway as it builds its U.S. regulatory footprint.

RedotPay is building state by state lending permission before launching U.S. credit products. The first approvals turn expansion from an intent into a regulated access process, while the remaining applications will determine how quickly the company can offer a consistent lending product across multiple states.

SME Finance And Business Banking

VersaBank Extends U.S. SRP to Small Business Loans and Leases

September 22, 2026, Canada / United States
  • VersaBank expanded its U.S. Structured Receivable Program, including its Real-Time SRP, to point of sale originators of small business loans and leases.
  • The bank says adding small business finance more than doubles its U.S. SRP market opportunity and supports its target of at least US$3 billion in additional U.S. SRP fundings next year.
  • Real-Time SRP can finance individual loans within hours, removing the need for partners to warehouse receivables for periods that typically run from five to 30 days or longer.

VersaBank is applying its digital receivables funding model to U.S. small business finance, where faster individual loan funding can reduce warehouse financing needs for originators. The expansion also gives a Canadian bank a larger role funding U.S. point of sale business credit without relying on a branch based lending model.

Treasury Liquidity And Cash Management

Circle Mint Adds BTC Backed USDC Borrowing Workflow

September 21, 2026, United States / Global
  • Eligible Circle Mint customers can now deposit bitcoin, mint cirBTC, supply it as collateral through supported third party lending markets on Arc or Ethereum and receive borrowed USDC back into Circle Mint.
  • Morpho is the first supported lending protocol. Circle says support for additional protocols, including Aave, will follow as the product develops.
  • Circle Technology Services provides the borrowing interface and customer controlled Smart Wallet, while lending and collateral activity occurs through third party DeFi protocols rather than Circle itself.

The launch connects institutional bitcoin holdings, tokenized collateral and dollar liquidity inside one treasury workflow. Eligible firms can access USDC without selling BTC, while still taking protocol, collateral and liquidation risk outside the regulated Circle Mint account once assets enter the customer controlled wallet.

Wealthtech Investing And Trading

Evergreen.ai Launches Personalized AI Financial Advice App

September 21, 2026, United States
  • Evergreen.ai launched as an on demand financial advice service available on mobile and desktop browsers, with public beta users receiving free access through January 1, 2028.
  • The service can use information supplied by users and linked financial accounts to provide personalized financial planning, retirement, investment and tax guidance.
  • Evergreen.ai is offered by Evergreen Wealth Advisors, an SEC registered investment adviser. Using the self service app does not itself make a user an advisory client, and a full advisory relationship begins only after signing an investment advisory agreement.

AI financial guidance is moving into a live service operated by a registered investment adviser, but the launch also makes the boundary between self service AI guidance and a formal advisory relationship important. Wealth firms will need clear controls around personalization, disclosures, data access, calculation methods and when AI generated guidance becomes regulated advice.

Capital Markets Infrastructure And Funding

Market Infrastructure Firms Form Issuer Sponsored Token Coalition

September 24, 2026, United States / Global
  • Bullish and Equiniti formed the Issuer Sponsored Token Coalition with Alpaca, Apex Fintech Solutions and DriveWealth among its first market infrastructure participants.
  • The group will develop technical standards, market infrastructure and operating approaches for issuer sponsored tokenized securities that can interoperate with existing capital markets.
  • Initial work covers issuer and shareholder rights, interoperability, regulated liquidity and the operating requirements linking issuers, transfer agents, brokers, exchanges, custody providers and blockchain markets.

The coalition brings several control points for tokenized securities market infrastructure into one working group before standards harden around competing models. Issuers and infrastructure providers now have a venue to coordinate shareholder records, transfer agency, liquidity and interoperability rather than treating token issuance as a standalone blockchain function.

NYSE and Blockchain.com Plan Tokenized U.S. Securities Distribution

September 23, 2026, United States / Global
  • Blockchain.com and NYSE signed an MOU outlining a distribution plan that would give Blockchain.com users access to tokenized U.S. exchange listed equities and ETFs through NYSE's previously announced digital ATS.
  • The proposed access remains subject to required regulatory approvals and is intended to extend the NYSE digital platform to Blockchain.com's global customer base.
  • The MOU also covers two way market data distribution, with ICE Data Services planning to distribute Blockchain.com crypto data and Blockchain.com planning to add selected ICE and NYSE data feeds to its app.

The proposed distribution agreement connects regulated U.S. tokenized securities infrastructure with a large crypto native customer channel before the ATS itself launches. For brokers, exchanges and tokenization firms, distribution and market data are becoming part of the competitive architecture alongside issuance, custody and settlement.

RBA Finds ASX Clearing and Settlement Gaps Persist

September 23, 2026, Australia
  • The Reserve Bank of Australia's 2026 assessment found one or more ASX clearing and settlement facilities only partly observed requirements covering governance, comprehensive risk management, credit risk and operational risk.
  • ASX established a Transformation Portfolio during the year to address longstanding weaknesses in governance, capability, culture and risk management.
  • The RBA says it will maintain heightened supervisory scrutiny, with particular focus on governance and independence of the clearing and settlement facilities and on operational and cyber resilience.

ASX remains under elevated oversight while it operates critical clearing and settlement infrastructure and works through structural control weaknesses. Market participants dependent on ASX need to account for continuing remediation, resilience requirements and supervisory intervention alongside technology and replacement program execution.

CIX Begins Live Canadian Equity Trading

September 21, 2026, Canada
  • CIX began its commercial launch with live trading in approximately 25 Canadian listed securities through its ASPEN, ASPEN VERT and MIDPOINT trading books.
  • Coverage is scheduled to expand to approximately 100 securities on September 23 and full production symbol coverage on September 28.
  • Trading initially runs from 8 a.m. to 5 p.m. ET. Fractional trading and longer hours are targeted for Q4 2026, subject to regulatory and operational readiness.

Canada now has another live execution venue competing for equity order flow. Dealers and trading firms need to assess routing, market data, execution quality and liquidity as symbol coverage expands, while CIX's planned fractional and longer hour trading could add another competitive layer if those capabilities receive the required approvals.

Eurosystem Launches Pontes for Tokenized Settlement in Central Bank Money

September 21, 2026, Euro Area
  • The Eurosystem launched Pontes, allowing wholesale transactions in tokenized assets to settle in central bank money through connections with TARGET Services.
  • An initial group of banks and DLT operators has completed onboarding and can begin using Pontes immediately. Additional functionality and longer operating hours will be added gradually, with full implementation expected by 2028.
  • The ECB also launched preparatory work for tokenized securities investments from its own funds portfolio, with initial purchases expected to focus on euro denominated public sector and European supranational securities settled through Pontes.

Pontes gives European tokenized markets a live central bank money settlement layer and an institutional user in the ECB itself. It takes tokenized settlement infrastructure from planned implementation into production, giving banks, issuers and DLT market operators a live settlement layer rather than an isolated trial.

Ondo Opens In Kind Creation and Redemption for Tokenized Stocks

September 21, 2026, United States / Global
  • Ondo Stocks now allows approved institutions to contribute existing underlying shares to mint corresponding tokenized stocks and ETFs, or redeem tokens to receive the underlying shares.
  • The functionality uses Alpaca's Instant Tokenization Network and adds an in kind primary market route alongside Ondo's existing cash funded process.
  • The new route lets institutional share inventory feed directly into onchain liquidity and is designed to support tighter spreads and deeper secondary market liquidity.

Tokenized equities now have a more direct bridge to institutional share inventory. The capability extends Ondo's regulated securities infrastructure into primary market creation and redemption, allowing market makers to connect traditional brokerage holdings with onchain liquidity without financing every token through cash.

B3 Launches Bitcoin USD Futures Trading

September 21, 2026, Brazil
  • B3 made its Bitcoin/USD Futures Contract and structured Bitcoin/USD futures rollover transaction available for trading on September 21.
  • The exchange has published trading parameters, minimum margin requirements, cross order rules and a market maker program for the new contract.
  • The product adds a U.S. dollar denominated Bitcoin derivative to B3's listed market infrastructure rather than requiring investors to access an offshore venue.

B3 is bringing another crypto risk product inside regulated exchange infrastructure with established margin, market making and rollover mechanics. Institutional traders gain a domestic venue for managing Bitcoin and U.S. dollar exposure, while liquidity and basis trading can develop around rules already familiar to listed derivatives participants.

Data Privacy And Governance

Irish DPC Fines Google €403 Million Over Location Data Processing

September 21, 2026, Ireland
  • Ireland's Data Protection Commission fined Google Ireland €403 million following an inquiry into location-data processing through Web & App Activity, Location History and Location Accuracy.
  • The DPC found GDPR infringements involving lawfulness and fairness, accountability, transparency and retention of location data across the three features reviewed.
  • Google was ordered to bring the affected processing into compliance within six months. The inquiry examined processing between May 25, 2018 and February 4, 2020.

Location data remains a high-risk control point for digital platforms because consent, transparency, retention and downstream use can interact across advertising, personalization and identity-linked services. Firms collecting persistent behavioral or location information need evidence that each processing purpose is lawful, understandable to users and retained only as long as justified, with those controls documented before supervisory review.

Weekly Close

Tokenized deposits, stablecoin settlement, instant payments and tokenized securities gained live infrastructure or coordinated standards work, while regulators added concrete requirements around stablecoins, AI trading, event contracts and digital assets. Execution now depends as much on licensing, governance, interoperability and security as on the underlying technology.

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NCFA Canada logoThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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Stripe vs PayPal vs Adyen for Canadian E-Commerce: A Founder’s Guide to Payment Stack Decisions in 2026

Sep 25, 2026

AI Image – Illustration of a Canadian e-commerce founder comparing online payment gateways

Choosing a payment gateway is one of the first infrastructure decisions a Canadian e-commerce founder makes - and one of the hardest to reverse.

Switching processors later means re-tokenizing cards, reconfiguring checkout flows, reconciling historical data, and often pausing growth while engineering catches up. Get it wrong early, and you pay twice: in fees and in the operational drag of failed payments, chargebacks, and support tickets your team was not staffed to handle.

Before you commit, run a full payment gateways comparison - Stripe, PayPal, and Adyen each handle refunds, chargebacks, and authentication flows differently, which directly affects your post-checkout support burden.

This guide is for founders, operators, and fintech-curious investors evaluating Stripe, PayPal, and Adyen for Canadian online businesses in 2026. It covers what each platform does well, where they fall short, and how payment choices ripple into customer support, compliance, and unit economics.

Why Payment Stack Decisions Matter More in Canada

Canada's e-commerce market continues to mature, but founders face a specific set of constraints:

  • Currency complexity - CAD settlement, USD supplier invoices, and cross-border shoppers on .com storefronts
  • Regulatory evolution - retail payment oversight, PSP registration expectations, and ongoing open banking policy development
  • Platform concentration - Shopify dominates SMB e-commerce, which influences which gateways integrate cleanly
  • Consumer trust - Interac familiarity domestically; PayPal and card wallets for cross-border buyers

Payment processors are no longer "backend plumbing." They are front-line infrastructure for conversion, fraud prevention, and regulatory posture - especially as AI-driven commerce and embedded finance reshape checkout experiences across the ecosystem NCFA Canada covers daily.

How to Evaluate a Payment Gateway (Beyond the Fee Sheet)

Before comparing logos, define what your business actually needs:

Criterion Questions to ask
Checkout conversion Does it support one-click, wallets, local methods, and mobile-optimized flows?
CAD settlement How fast do funds arrive in your Canadian bank account?
Multi-currency Can you charge in USD/EUR without a separate entity?
Fraud & 3DS How are SCA, 3D Secure, and high-risk transactions handled?
Disputes & chargebacks What tooling exists for evidence submission and win rates?
Platform fit Native Shopify, custom stack, marketplace, or subscription billing?
Support load Do payment errors generate customer tickets you must resolve manually?

The cheapest per-transaction rate is meaningless if failed authorizations and confused shoppers create a support queue that scales linearly with revenue.

Stripe vs PayPal vs Adyen: At a Glance

Stripe PayPal Adyen
Best for Developer-led DTC, SaaS, subscriptions Consumer trust, quick launch, marketplaces Enterprise, omnichannel, high volume
Canadian SMB fit Excellent (Shopify, APIs) Strong (brand recognition) Moderate (overkill for early stage)
Setup complexity Low–medium Low Medium–high
Typical pricing ~2.9% + $0.30 CAD (varies) ~2.9% + fixed fee (varies) Interchange++ (custom quotes)
Wallet / PayPal button Via Stripe Native Supported
Subscription billing Strong (Billing) Basic Strong
In-person / POS Terminal available Zettle Unified commerce strength
Ideal stage Seed to scale Launch to growth Scale to enterprise

Stripe: The Default for Canadian DTC and SaaS Founders

Strengths

Stripe has become the de facto choice for Canadian startups building on Shopify, custom React storefronts, or subscription models. Its API-first design, documentation quality, and ecosystem (Billing, Radar fraud tools, Terminal) make it attractive for technical teams.

For Shopify merchants, Stripe powers Shopify Payments in many regions - reducing friction at onboarding. Founders running headless commerce or multi-product SaaS often prefer Stripe's granular webhooks and reconciliation exports.

Weaknesses

  • Pricing transparency decreases at volume (custom enterprise deals)
  • Some Canadian founders report friction with high-risk categories (certain supplements, CBD-adjacent, etc.)
  • Support for non-technical merchants can feel ticket-heavy compared to PayPal's consumer-facing brand

When to choose Stripe: You want one stack for online + subscriptions + future POS, and your team can manage webhooks, dispute evidence, and payout reconciliation.

PayPal: Trust, Speed, and the Wallet Effect

Strengths

PayPal's brand still converts skeptics. For Canadian SMBs selling to US and international buyers, the PayPal button can lift checkout completion - especially among customers who do not want to re-enter card details on a new storefront.

Setup is fast. PayPal Commerce Platform supports marketplaces and seller onboarding. For founders validating product-market fit, PayPal remains a credible "week one" option.

Weaknesses

  • Fee structure can become expensive at scale, with currency conversion markups
  • Less flexible than Stripe for complex subscription logic or custom checkout UX
  • Account holds and rolling reserves have frustrated high-growth merchants historically
  • Data portability and developer experience lag Stripe for custom builds

When to choose PayPal: You need recognizable trust signals immediately, sell cross-border to wallet-preferring buyers, or run a marketplace model where seller payouts matter.

Adyen: Unified Commerce for Scale

Strengths

Adyen is built for operators who sell online, in-store, and across markets from one platform. Interchange-plus pricing can win at volume. Unified reporting across channels appeals to retail brands expanding from DTC into physical retail.

For Canadian companies with global ambitions - particularly those already processing millions monthly - Adyen's single-stack narrative reduces vendor fragmentation.

Weaknesses

  • Not designed for bootstrapped Shopify stores doing $20K/month
  • Implementation timelines and commercial negotiations favor established businesses
  • Overkill if you only need a simple card checkout today

When to choose Adyen: You are processing significant volume across channels, need global acquiring in one contract, and have finance ops to manage interchange-based pricing.

Hidden Costs Founders Miss in the Comparison

Currency conversion

Charging in CAD but paying suppliers in USD? Conversion spreads matter. PayPal and Stripe both apply FX margins on top of base rates. At scale, a 0.5% FX difference is material.

Failed payments and involuntary churn

Subscription businesses lose 20–40% of churn to failed card charges (expired cards, insufficient funds, bank soft declines). Stripe Billing and Adyen offer retry logic; PayPal's subscription tooling is less sophisticated. Each failed renewal can become a support ticket if dunning emails are weak.

3D Secure and authentication friction

Strong Customer Authentication (SCA) and 3DS reduce fraud but increase checkout abandonment when implemented poorly. European shoppers and Canadian issuers increasingly challenge transactions. Misconfigured 3DS flows generate "payment failed" emails that flood support - even when the customer did nothing wrong.

Chargebacks and dispute fees

A chargeback costs more than the transaction fee: you lose the sale, pay a dispute fee, and spend ops time assembling evidence. Gateway dispute portals vary widely in usability. Founders who ignore dispute win rates leak margin quietly.

Refund processing timelines

Refund speed affects customer sentiment. PayPal and Stripe timelines differ by funding source. Slow refunds drive "where is my money?" tickets - a support cost rarely modeled in gateway spreadsheets.

The Support Impact: Payments Are a CX Problem

Founders often evaluate gateways in finance silos. Operations teams live with the consequences.

Common payment-driven support scenarios:

Issue Customer behavior Ops impact
3DS failure at checkout Abandons cart or retries multiple times Lost revenue + confused emails
Duplicate charge appearance Contacts support immediately Refund or investigation
Address / AVS mismatch Order held, customer anxious Manual review queue
Subscription renewal fail "Why was I cancelled?" Retention risk
Cross-border decline Assumes fraud, posts on social Brand damage

Automating post-purchase support (order status, refund policy, payment retry guidance) reduces ticket volume - but the root cause is often gateway configuration, not customer irrationality.

Smart founders pair payment stack decisions with support automation strategy. Fix checkout friction first; automate repetitive WISMO and refund questions second.

A Decision Framework for Canadian Founders

Choose Stripe if:

  • You are on Shopify or building custom checkout
  • Subscriptions or usage billing are core to the model
  • Your team values APIs and ecosystem integrations

Choose PayPal if:

  • Cross-border wallet conversion is a priority
  • You need fast launch with minimal engineering
  • Marketplace seller payouts are part of the model

Choose Adyen if:

  • You process high volume across online + in-store
  • Global acquiring consolidation is a strategic goal
  • Finance ops can manage interchange-plus economics

Run both Stripe + PayPal if:

  • A/B data shows wallet lift without cannibalizing margin
  • You can reconcile two payout streams cleanly
  • Support teams have playbooks for each payment method

Many Canadian SMBs start with Shopify Payments (Stripe) and add PayPal Express for international conversion - then revisit at $1M+ ARR when fee optimization and unified reporting justify complexity.

Compliance and Regulatory Considerations in Canada

Canadian founders should stay aware of evolving payment oversight:

  • Retail payment supervision - understand whether your provider operates within Canada's retail payments framework and PSP expectations
  • PCI scope - hosted checkout and tokenization reduce your compliance burden; custom card fields increase it
  • Consumer protection - clear refund policies and chargeback response timelines are not optional; they affect dispute outcomes
  • Open banking trajectory - while still evolving, account-to-account payment alternatives may shift gateway economics over the next 3–5 years

NCFA's ecosystem regularly covers payments regulation, embedded finance, and fintech policy - worth monitoring as your volume grows and compliance surface area expands.

Where to Invest After You Choose a Gateway

Payment selection is step one. These investments compound ROI:

  1. Checkout optimization - reduce fields, clarify error messages, localize for QC/EN
  2. Fraud rules tuning - balance Radar / risk settings vs false positives
  3. Dunning and retry logic - for any recurring revenue model
  4. Dispute playbooks - template evidence packs for common chargeback reasons
  5. Support automation - deflect payment-status tickets before they reach humans

The Bottom Line

For most Canadian e-commerce founders in 2026, Stripe remains the strongest default for growth-stage DTC and SaaS - especially on Shopify. PayPal earns its place when wallet trust and cross-border conversion justify the fees. Adyen makes sense when unified commerce and global volume are already realities, not aspirations.

See:  Programmable Stablecoin Payments

The right gateway is not the one with the lowest advertised rate. It is the one that maximizes successful transactions, minimizes dispute drag, and keeps your support team focused on problems that actually require judgment.

Model the full cost - FX, chargebacks, failed renewals, and tickets - before you scale ad spend. Your payment stack is a fintech decision with P&L consequences long after checkout.


NCFA Jan 2018 resizeThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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Where Canada’s SME Financing Process Still Breaks

September 22, 2026 | NCFA Story Intelligence | SME Finance And Business Banking, Open Banking And Open Finance, Capital Formation, Competition And Market Structure

AI Image – Where Canada’s SME Financing Process Still Breaks

Why High Approval Rates Still Hide SME Financing Friction

On September 17, 2026, the UK regulator went looking for evidence that its own rules were blocking small business finance.

It didn't find much.

Instead, the FCA SME finance review found problems scattered across the financing process. Some small firms don't know which product fits. Applications can be repetitive. Valuable businesses can own little conventional collateral. A lender can say no for reasons that have more to do with its own risk appetite than the health of the company. And after a decline, the entrepreneur may be left wondering where to go next.

Canada looks different at first glance.

Small business debt approval reached 97% in 2025.

That is a strong number. But approval is only one part of the financing process.

Why is the Competition Bureau reviewing SME lending, why did 76% of borrowers still have to pledge collateral, and why are specialist lenders building financing products around needs that conventional credit doesn't always serve?

The problem may not be a simple shortage of money.

It may be what happens between a viable SME and the right capital at the right stage of its life.

The UK expected to find regulatory barriers. The FCA concluded that its regulation was not a major obstacle to SME finance. What surfaced instead were problems with finance readiness, market navigation, risk assessment, repeated customer checks, product availability, alternative lending and personal guarantees. SMEs account for 60% of UK private sector employment, yet only 21% of the value of UK business loans goes to them.

Canada starts from a much stronger approval number, but fewer firms enter the debt market. ISED's 2025 Credit Conditions Survey found that 20% of small businesses requested debt and 97% received full or partial approval. Ninety seven per cent of requested dollars were authorized. The average amount approved was C$140,148 and the average interest rate fell to 5.8%. In the UK, around 50% of smaller businesses used external finance in Q3 2025, while challenger and specialist banks supplied 60% of gross SME bank lending. The measures aren't directly comparable because the UK figure includes credit cards, overdrafts, leasing and other products. Still, the UK data show SMEs using a wider range of external finance, alongside a market where challenger and specialist banks now provide 60% of gross SME bank lending. That makes Canada's 20% debt request rate worth looking at more closely.

The Problem Starts Before Approval 2025 to 2026

A 97% approval rate sounds like the problem is almost solved. It isn't. Only one in five Canadian small businesses requested debt in 2025, while UK firms use external finance much more widely across loans, overdrafts, cards, leasing and other products. The measures differ, so this isn't an approval rate comparison. It does make the Canadian funnel worth looking at more closely. Approval tells us about businesses that make it into the credit process. It says much less about the founder who can't find the right product, decides a C$60,000 application isn't worth weeks of effort, lacks conventional collateral or never applies because the available financing simply doesn't fit.

Who never reaches the approval number

Most Canadian firms that didn't seek financing in 2025 genuinely said they didn't need it. That was 83% of non applicants, so operating without external capital should not automatically be treated as a market failure.

The smaller groups are still revealing.

Six per cent didn't know what financing sources were available. Seven per cent considered financing too expensive. Two per cent found applying too difficult or time consuming. One per cent expected to be turned down.

Age makes the picture more interesting. Businesses operating for less than five years requested debt at a 40% rate, twice the 19% rate among businesses over ten years old. Their approval rate was lower at 90%.

Innovative firms also requested debt more frequently than firms classified as non innovators, while their approval rate was lower.

The financing funnel therefore begins before a lender ever approves or rejects a loan.

Questions worth watching

  • How many viable firms never apply because the available product doesn't fit?
  • How many owners delay investment or fund the business personally instead?
  • Would better navigation bring more suitable borrowers to more suitable lenders?

The loan gets smaller. Much of the work doesn't. A lender still has to identify the customer, understand the business, assess risk, collect financial information, document the facility and service the account. The FCA found that high underwriting and customer support costs can make smaller or more complicated loans commercially unattractive. Bank of England research cited in the review found that operating and impairment costs mattered more than capital requirements in explaining weaker returns on SME lending.

Smaller firms can end up trying to fit products built for someone else. A bank can justify the time needed to structure a large commercial facility. The economics get harder when the business needs C$50,000 or C$100,000 and wants an answer quickly. David Gens, Founder and CEO of Merchant Growth, described that mismatch in a recent NCFA Fintech Fridays conversation. Merchant Growth has since funded more than 15,000 Canadian small businesses and deployed over C$1.5 billion, building around smaller financing needs and current business performance.

A Good Business Can Still Be The Wrong Fit Product Fit

Maybe the company needs C$75,000 instead of C$750,000. Maybe sales are healthy but uneven. Maybe the money has to arrive before inventory is paid for or receivables are collected. Maybe there isn't much physical collateral to pledge. Being awkward for a standard loan product is not the same thing as being a bad business.

Collateral still carries enormous weight. In 2025, 76% of Canadian small business borrowers had to pledge collateral. The requirement reached 93% for long term debt. Buildings, machinery, inventory and receivables give lenders assets they can value and potentially recover if the borrower fails.

A fintech can become more valuable without owning much more that a lender can seize. Revenue rises. Customers renew. Software improves. Proprietary technology becomes harder to replicate. Yet BDC notes that patents and intellectual property can be harder for banks to value, making financing more difficult for businesses such as SaaS, ecommerce, cleantech and media companies.1

IP Value Does Not Automatically Become Borrowing Power IP Rich Firms

This is where a fintech can look very different depending on who's looking at it. An equity investor may see valuable software, proprietary data, customer relationships, patents and future revenue. A lender also has to ask what those assets are worth if the company fails. Enterprise value and collateral value aren't always the same thing.

Why valuable intellectual property can still be hard to finance

Canada doesn't ignore intellectual property.

The problem is turning IP into something lenders can value consistently, secure legally and recover predictably.

Software, patents, proprietary data, algorithms, trademarks, designs, licences and know how can create substantial economic value. But a lender considering a secured loan has to answer uncomfortable questions. Who would buy the asset if the company failed? Does the IP retain value without the people who created it? How transferable are customer contracts? How much would a distressed sale actually recover?

Real estate and standardized machinery generally produce clearer answers.

This gap is especially relevant to Canadian fintech and technology companies because their strongest assets can grow faster than the pool of conventional collateral sitting on the balance sheet.

The gap is central to Canada Values IP But Capital Still Falls Short. Canada already has IP strategy programs, financing experience and specialized expertise. The challenge is making valuation, underwriting and recovery repeatable enough that IP financing doesn't have to become a custom project every time.

Questions worth watching

  • Can standardized IP valuation reduce the cost of underwriting smaller companies?
  • Can guarantees absorb part of the recovery risk where the underlying business is strong?
  • Can recurring revenue carry more weight when hard collateral is limited?
  • Can lenders build enough default and recovery data to make IP financing less bespoke?

Canada has already decided to share some of that lending risk. The Canada Small Business Financing Program supported 6,409 loans worth almost C$1.9 billion in 2024 to 2025. Startups and businesses operating for less than one year received C$1.4 billion, or 74.1% of the total.

Follow the money and the old lending logic is still visible. Leasehold improvements accounted for C$1.2 billion and equipment another C$350.9 million. Working capital and intangible asset loans together represented only C$51.5 million, or 2.7% of program lending.

Canada Is Taking More Risk. The Mix Still Matters Public Finance

The programs aren't standing still. Working capital and intangible assets can qualify. Lines of credit were added. Public risk sharing already helps younger firms borrow. Yet usage remains heavily concentrated in assets lenders know how to secure. The rules have widened faster than the financing mix has changed.

Revenue gives the lender something else to watch. BDC now says technology financing can take recurring revenue such as ARR and MRR into account. Predictable subscription revenue can help demonstrate repayment capacity even when profitability is still developing.2

The public guarantee can follow the loan through someone else's front door. BDC's Business Accelerator Loan Program supports working capital facilities between C$25,000 and C$500,000. The participating financial institution originates and manages the loan while BDC guarantees it.

Financing Should Grow With The Business Lifecycle

The first facility might be C$25,000. Customers arrive and C$75,000 makes more sense. Revenue keeps climbing and the company needs C$250,000 for payroll, inventory or expansion. Later it may need equipment finance, growth debt or equity. The business keeps changing. The financing relationship should be able to change with it.

Where the financing need changes

A founder at the beginning may need a small operating facility, startup capital or a government backed loan.

Once customers begin paying regularly, the lender has something new to work with. Bank flows, card receipts, invoices, receivables and recurring subscription revenue start to create an operating history.

As the company grows, it may need a revolving facility rather than another fixed loan. A manufacturer may need inventory finance. A professional firm may need receivables financing. A SaaS company may need capacity tied to recurring revenue. Another business may need equipment that can support its own security.

Eventually debt stops being the complete answer. A company investing heavily in R&D, entering new markets or scaling before cash flow catches up may need venture capital, growth equity or other patient capital instead.

The friction appears when every new stage feels like a new financing relationship.

The business has already spent years proving who it is. Ideally, that history should become an asset rather than disappear each time the company needs a different product.

The UK is trying to make business information do more work. The FCA sees open finance as a way to give lenders more complete and timely information, reduce duplicated applications and improve decisions. SME lending is one of the UK's first priority open finance use cases. The FCA plans to publish options for its first open finance scheme in early 2027.

Canada sees the same lending opportunity in consumer driven banking. Budget 2025 says the framework can reduce administrative work for SMEs, connect banking information with accounting, tax and payroll tools, support faster loan decisions and provide access to new forms of financing.3

Business Data Can Become Credit Infrastructure Open Finance

For an SME, the useful part of open banking isn't another dashboard. It's proving revenue, cash flow and financial health without rebuilding the same file for every lender. For the lender, the payoff is different. Better data can make a small loan cheaper to assess.

How reusable business data changes the lending economics

A C$75,000 loan can become expensive to originate when an analyst has to chase bank statements, tax information, ownership records, invoices and financial statements manually.

Permissioned business data can change that equation.

Before applying, the owner could see current cash flow and compare financing options using verified information.

During underwriting, the lender could receive bank activity, revenue data and other authorized records in a consistent format.

If another lender turns out to be a better fit, the borrower shouldn't necessarily have to rebuild everything from zero.

None of this removes the lender's responsibility to assess risk. It can remove duplicate collection, manual verification and unnecessary information cost.

Fixed administration costs hurt the economics of smaller loans first.

The same data problem runs through AI Won’t Solve SME Finance Without Better Data. Faster underwriting only helps when the information underneath it can be trusted and reused.

Then comes the moment a lender says no. The FCA heard that some SME borrowers receive limited explanations for a decline. That can be particularly frustrating when the problem is lender specific. A bank may simply have little appetite for the sector, ticket size or type of risk. The business itself may still fit another provider perfectly well.

Canada can still leave the borrower back at the original door. Under BDC's Business Accelerator Loan Program, the participating institution manages the credit decision. If the borrower is declined, BDC says it has no visibility into the reason and directs the entrepreneur back to the financial institution for more information.

A No From One Lender Shouldn't Mean Starting Over Referral

One lender's decline can mean many things. Wrong sector. Wrong ticket size. Wrong collateral. Wrong product. Wrong risk appetite. Canada doesn't need to turn every rejection into an approval. It needs a better way to separate a weak business from a business standing in front of the wrong lender.

What better routing could look like

The UK already has a Bank Referral Scheme that can direct declined SMEs toward alternative finance platforms. The FCA review makes clear that the system still has shortcomings, which is why reforms are underway.

If a borrower agrees, verified information already assembled for one application could help identify whether another lender, credit union, government backed program, community finance provider or specialist platform is a better fit.

The next lender would still make its own decision.

The SME simply wouldn't have to return to the beginning without knowing why the first application failed or whether another provider serves that type of business.

Better routing can increase competition without lowering underwriting standards.

Canada is now looking closely at competition in SME lending. The Competition Bureau is reviewing SME loan competition in Canada, including lender entry, expansion and switching. The Bureau says Canada's market is dominated by large banks, smaller lenders appear to face barriers, comparing offers can be difficult and the borrowing cost gap between SMEs and large firms is wider than in many OECD countries.8

Meanwhile, Canada is adding capital further up the financing ladder. Budget 2025 committed C$1 billion to a new Venture and Growth Capital Catalyst Initiative and another C$750 million toward businesses facing early growth funding gaps.4

The Friction Can Stack Before Scale Early Growth

There isn't one hardest stage for every company. A startup can struggle because it has almost no history. A mature SME can get trapped by switching costs. A scaleup can need patient capital that conventional debt can't provide. But the years between startup and scale are interesting because several problems can arrive together. Revenue exists. Capital needs are growing. Yet the company may still have limited collateral, a short history and a financing request too small to justify a custom commercial structure.

Manufacturers are already showing why timing matters. Only 87% of manufacturing applicants were approved for debt in ISED's 2025 survey, compared with 97% across small businesses overall. Now tariff pressure is hitting the same sector. Statistics Canada reported that 49.7% of manufacturers expected U.S. tariffs to hurt their business over the next 12 months, compared with 32.2% of Canadian businesses overall.5

Ottawa is responding with liquidity because the pressure arrives in cash flow first. The latest federal package adds C$1.5 billion to the Regional Tariff Response Initiative, a new C$500 million BDC liquidity stream for immediate cash flow pressure and another C$2 billion through the Canada Strong Diversification Fund.6

A Healthy Business Can Still Need Money Fast Trade Pressure

A manufacturer doesn't have to be failing to run short of working capital. A tariff can raise material costs. Inventory may sit longer. A customer can push out an order. New suppliers may require different payment terms. The financing need can appear before the damage shows up in annual financial statements. That is when speed, product size and current operating data start to matter as much as the total amount of capital in the system.

The UK is fixing friction inside the financing process. Its response includes better finance navigation, reform of referral after a declined application, better commercial credit data, digital verification, Consumer Credit Act reform and open finance focused directly on SME lending.

Canada is building capacity from several directions. Public guarantees support smaller loans. BDC lends directly and through partner institutions. Consumer driven banking can improve underwriting. The Competition Bureau is looking at lender competition. Ottawa is adding venture and growth capital. Tariff programs are supplying emergency liquidity.

The Right Capital Has To Arrive At The Right Time 2026

Canada doesn't lack lenders, public programs or investment capital. And the UK's approach isn't proof that Britain has solved SME finance. It hasn't.

The FCA report is useful because it changes where we look. Capital can exist and friction can still stop the right financing from reaching the right company at the right moment.

Where Canada can remove more friction now

Make smaller loans cheaper to originate. The economics improve when more financial information can arrive digitally, in a consistent format and with the SME's permission.

Let financing capacity rise as the business proves itself. Growing revenue, recurring contracts, receivables and transaction history can become reasons to increase a facility instead of waiting for more physical collateral to appear.

Make IP easier to finance. Canada already recognizes the problem. More consistent valuation, better recovery data and targeted public risk sharing could help lenders use intellectual property without pretending it behaves like real estate.

Stop making the SME repeat itself. Reusable identity, ownership and financial verification can reduce the cost of applying to another provider.

Make a decline more useful. Tell the business enough to understand what happened and, with permission, make it easier to find another lender whose product and risk appetite are different.

Keep debt and equity connected to the lifecycle. A company that outgrows a small operating loan shouldn't have to fall through a gap before it becomes large enough for institutional growth capital.

These aren't arguments for lowering credit standards.

They are arguments for making good credit cheaper to identify and easier to match.

Canada's SME finance numbers don't describe a credit desert. A 97% approval rate makes that clear.

A small business can have customers, revenue and a good reason to borrow and still be the wrong size for a lender's economics. A fintech can build valuable intellectual property faster than it builds conventional collateral. A manufacturer can suddenly need working capital because tariffs change its cash cycle. And a company that grows from C$25,000 of financing to C$250,000 can find itself proving the same business all over again.

Canada is already working on many of these problems. That's important. The opportunity isn't to replace banks, BDC or existing programs with one new solution.

It's to make the financing relationship itself work better as the SME changes.

Current business data can lower underwriting cost. Public guarantees can make smaller loans practical. Intellectual property can become easier to finance when valuation and recovery evidence improves. Consumer driven banking can help verified information travel. Specialist lenders can serve needs that large institutions aren't structured around. Growth equity can take over when debt stops being the right answer.

Put those pieces together and the financing process starts looking like a relationship that grows with the company (not disconnected and fragmented).

And for someone's sake, SMEs shouldn't have to become the wrong kind of business just to fit the available loan.

Talking Point

If a Canadian SME keeps proving itself through stronger revenue, better cash flow, customers and intellectual property, why should its financing relationship have to start over every time the business reaches a new stage?

FAQs

Do Canadian SMEs have trouble getting loans?
Not across the board. ISED reported a 97% full or partial approval rate among small businesses that requested debt in 2025. Friction can still appear through collateral requirements, application cost, product fit, lender specialization, financing size and businesses that never enter the application process.
Why is intellectual property harder to finance?
Software, patents, proprietary data, brands and other intellectual property can create considerable enterprise value. They can also be harder to value, transfer and recover than buildings or machinery. That can reduce their usefulness as conventional loan collateral even when they are central to the company's value.
How could consumer driven banking help SME lending?
Permissioned business data could give lenders a more current view of revenue, cash flow and account activity while reducing repeated document collection. Lower information and verification costs are particularly valuable for smaller loans, where fixed underwriting costs consume a larger share of the economics.
Where does SME financing friction appear most strongly?
There is no single hardest stage for every SME. Early growth is particularly interesting because revenue and financing needs can rise before a company has accumulated substantial collateral, a long financial history or access to larger growth capital markets. Several forms of friction can therefore arrive at the same time.
What can Canada do after an SME loan is declined?
A decline could provide clearer reasons and, with the business's permission, better routing toward another lender or financing program. Different lenders have different sector appetites, ticket sizes and underwriting models. A rejection from one provider does not automatically mean the business cannot be financed.

NCFA Jan 2018 resizeThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit www.ncfacanada.org

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Finland’s 39% Digital Finance Result Has Lessons For Canada

September 22, 2026 | NCFA Insight | Financial Literacy And Consumer Capability, Artificial Intelligence And Data, Cybersecurity And Fraud, Lending Consumer Credit And BNPL, Digital Assets Blockchain And Tokenization

AI Image – Digital financial literacy in Canada and Finland across AI, fraud, investing and online finance

Finland's Data Exposes Six Gaps Canada Should Measure

On September 16, 2026, the OECD published Finland's digital financial literacy strategy, backed by a survey of 2,061 adults and an comprehensive review of how people bank, borrow, invest, use artificial intelligence, encounter fraud and judge financial information online.

The headline result is uncomfortable for any country with a highly digital financial system. Only 39% of Finnish adults reached the OECD's minimum digital financial literacy benchmark. Finland is hardly a digital laggard. Internet use is nearly universal, most financial products are managed online and Finland performs above the OECD average on comparable digital financial literacy measures. Canada also has extensive financial literacy research and generally performs strongly on international measures, but no directly comparable national digital financial literacy benchmark appears to be published.

Canada starts from a similar position on access. Statistics Canada found that 94% of Canadians used the internet for personal purposes in 2022 and 82% of internet users banked online. The real gap begins after access. Can consumers judge the products, risks and advice they encounter once they are online?

10 Numbers Behind The Digital Finance Gap

97% / 95% of Finnish adults used the internet daily, while 95% of current or payment account holders managed those accounts online.
70/100 vs. 63/100 was the average general digital literacy score versus the average digital financial literacy score. Only 39% reached the minimum digital financial literacy benchmark.
54/100 was the digital financial literacy score for adults aged 18 to 29, the lowest of any age group.
46% / 56% of adults aged 18 to 29 used AI for financial advice at least monthly, while 56% said they needed help using digital financial services.
70% / 43% / 52% of young adults cited friends or family, influencers and online advertising respectively as sources influencing financial product choices.
32% / 35% vs. 45% used short term online credit. Among users, 35% reached the digital financial literacy benchmark compared with 45% of non-users.
16% owned crypto-assets, about four times the OECD comparison rate used in the report. Among owners, 68% cited fun, 51% fear of missing out and 43% making money quickly, while owners performed worse than non-owners on two of three basic crypto knowledge questions.
31% / 38% vs. 21% of adults encountered at least one online financial scam or fraud in the previous two years. Exposure was 38% among people below the digital financial literacy benchmark versus 21% among those above it, rising to 56% versus 33% among young adults.
41% rarely or never checked whether an online financial provider was regulated.
68% / 75% / 23% rejected the view that online financial providers are generally trustworthy, 75% would not let their bank share financial data with other companies for personalized advice, and only 23% recognized that financial providers may use non-financial personal data in credit or insurance decisions.

Responder percentages are interesting but the cross-section of those responses are more revealing. They show where digital adoption, financial judgment, trust and consumer protection stop moving together.

1. High Digital Use Can Hide Financial Capability Gaps

Finland has already cleared many of the hurdles normally associated with digital inclusion. Internet use is nearly universal, 95% of current or payment account holders manage those accounts online and Finnish adults scored an average 70 out of 100 on the OECD's general digital literacy measure. Yet their average digital financial literacy score fell to 63, and most adults didn't reach the minimum benchmark.

See: Open Banking’s Next Battle Is Decision Intelligence

That difference is important.

Digital literacy measures whether someone can function effectively and safely online. Digital financial literacy adds another layer by requiring consumers to understand financial products, compare alternatives, check providers, protect financial information and make informed decisions about risk. Being good at the first doesn't establish competence in the second.

Canada already recognizes this. The National Financial Literacy Strategy treats digital access and digital literacy as related but separate issues and calls for consumers to develop the skills needed to navigate an increasingly digital financial marketplace.

The Canadian numbers show why access alone isn't enough. Among internet users in 2022, only 54% of people without a high school diploma banked online, compared with 70% of adults aged 65 and older and 73% of people in the lowest income group. Access is high overall, but participation is uneven. Measuring internet or online banking use alone won't show whether Canadians understand the financial decisions they make once they are online.

2. Young Adults Use More AI And Need More Financial Help

The age results overturn an easy assumption about digital finance. Finland's youngest adults are among its most active users of newer technology, yet they recorded the weakest digital financial literacy score. Almost half of 18 to 29 year olds used AI for financial advice at least monthly, while more than half said they needed help with digital financial services.

The information environment is different for this group too. Seventy per cent said recommendations from friends, family or acquaintances influenced financial product choices. Forty three per cent cited influencers and 52% cited online advertising. The issue isn't whether young adults can find financial information. They have more sources competing for their attention than previous generations did.

The OSC's Canadian finfluencer research found that 82% of investors aged 18 to 24 use social media for investment information. In a separate experiment, 38% of participants exposed to promotional investment content bought the promoted asset versus 8% in the control group.

AI now adds a personalized, conversational source that exists  beside social media, advertising, financial institutions and licensed advisers. Financial capability for younger Canadians therefore has to include source verification, recognizing promotional content, understanding when regulated advice is required and checking an AI answer before acting on it. Teaching someone how to operate a financial app addresses a different problem.

3. Faster Borrowing And Investing Demand Better Decisions

Digital finance can improve access and lower costs, but it can also shorten the time available to understand a financial commitment.

Finland's short term credit data highlights the problem. Users of online credit products had lower digital financial literacy than non-users and were more likely to report impulsive online purchasing. Only 35% of users reached the minimum literacy benchmark, compared with 45% of non-users.

Crypto shows the same tension from the investment side. Finland's crypto ownership rate was four times the OECD comparison rate used in the report. Participation was particularly high among younger adults, yet owners performed worse than non-owners on two of three basic crypto knowledge questions. The reasons for owning also mixed investing with experimentation, entertainment, fear of missing out and the desire to make money quickly.

Canada has already reached substantial crypto participation. The OSC's 2025 Canadian crypto survey found that 25% of Canadian adults currently owned crypto-assets. Meanwhile, Canada's BNPL market continues to make small amounts of credit available directly inside checkout flows, while credit reporting remains inconsistent across providers and bureaus.

See: Buy Now, Pay Later And Your Credit File In Canada

Canada already requires financial knowledge to be delivered when it's relevant and before a consumer commits. Digital products can do this far more precisely than a classroom or generic information page. Total borrowing cost can appear before a BNPL commitment. An investing app can explain concentration or volatility while an order is being prepared. A crypto platform can surface custody, loss and regulatory information before funds leave the account.

Less friction in the transaction makes that moment more important, not less.

4. Fraud Shows What Capability Gaps Can Cost

Finland's strongest link between literacy and a real financial outcome appears in its fraud data. Adults below the digital financial literacy benchmark were exposed to scams and fraud at almost twice the rate of those above it. Among young adults, exposure reached 56% for people with lower literacy versus 33% among their higher literacy peers.

One behaviour jumps out. Four in ten Finnish adults rarely or never checked whether an online financial provider was regulated before buying a financial product. That's a serious weakness when consumers can discover an investment, lender, crypto platform or purported adviser through a social post, advertisement, search result or AI conversation and transact minutes later.

Canada doesn't need Finnish data to establish that fraud is a major domestic problem. Canadians reported more than $704 million in fraud losses in 2025, according to the federal government's National Anti-Fraud Strategy consultation, and only an estimated 5% to 10% of incidents are reported. Fraudsters are also using AI and operating across financial services, telecom, social media and other channels.

Financial education can improve the odds that someone recognizes a warning sign, but Finland doesn't assign the problem to consumers alone. Its strategy pairs literacy with security controls, clear institutional warnings, consumer protection, reporting processes and coordination among financial firms and public agencies.

See: How Fraud Broke The Old Rules Of Trust And Verification

Canada can apply the same logic by making provider verification much easier. Before sending money, consumers should be able to answer four basic questions quickly: Who operates this service? Is it regulated? What protections apply? Where do I report a problem? Teaching consumers to verify a provider works better when the verification itself isn't difficult.

5. Digital Use Can Rise While Trust Stays Low

Finland also shows why transaction volume doesn't tell us how consumers feel about the financial system underneath it. Digital financial services are deeply embedded in everyday life, yet 68% of adults rejected the statement that online financial providers are generally trustworthy. Three quarters wouldn't allow their bank to share financial information with other companies for personalized financial advice.

At the same time, only 23% correctly recognized that financial providers may use non-financial personal data, including social media information, when making credit or insurance decisions. Consumers can therefore be cautious about data use without fully understanding how data-driven finance works.

That has direct relevance for Canadian consumer-driven banking, AI-powered financial services and future forms of financial data portability. Consent can't do all the work. A customer also needs to understand who receives the information, what can be inferred from it, what decision it may influence and what rights apply afterward.

See: Canada's Open Banking Strategy Starts With Trust

This is where data literacy becomes financial literacy. A useful Canadian strategy should measure whether consumers understand the consequences of sharing financial and non-financial data, rather than treating acceptance of a disclosure screen as evidence of informed participation.

6. Canada Needs A Better Measure Of Digital Financial Capability

FCAC's strategy already calls for digital literacy, trustworthy financial help, behavioural design, stronger consumer protection and just in time information. Its 2026 to 2029 strategic plan is now operating in a market where AI, fraud and new financial products continue to increase the demands placed on consumers.

Finland receives kudos for applying the OECD digital financial literacy framework to a nationally representative survey and using the results to identify where digital financial capability is weakest. The framework combines financial knowledge, behaviour and attitudes into one digital financial literacy score. It also tests whether people understand digital contracts and crypto risk, compare alternatives, check whether providers are regulated, protect their credentials and recognize unsafe online behaviour. That gives policymakers a way to compare groups and connect capability with outcomes such as fraud exposure.

Canada has useful national measures of internet use, online banking, financial resilience, fraud, investment behaviour and digital access, but no current nationally representative benchmark appears to combine these digital financial capabilities and report the share of adults who meet a common minimum standard.

Canada could measure whether a young adult using AI for investing has the same capability as someone using a bank adviser, whether people taking digital credit understand total obligations, whether crypto owners understand loss and custody risk, whether consumers can verify online providers and whether people know what happens to data after they consent to sharing it.

The measures should also follow outcomes. Finland proposes evaluating whether programmes change knowledge and behaviour instead of relying on page views, campaign reach or course participation. Canada could go further by connecting digital financial capability with fraud losses and reporting, debt stress, complaints, switching behaviour and other observable outcomes.

That would also help separate problems that education can address from problems that require better product design, supervision or consumer protection. A consumer shouldn't need expert knowledge to compensate for a confusing interface, hidden cost, weak fraud control or misleading recommendation.

What Canada Should Take From Finland's Results

1. Measure what people can do after they get online. Internet access and online banking tell us who can participate. They don't tell us whether someone can compare products, understand the risk, check a provider or recognize when something looks wrong.

2. Don't mistake digital confidence for financial capability. Younger adults may be highly comfortable with apps, AI, crypto and social media while still needing help judging financial information and risk. Canada's approach to younger consumers should reflect that difference.

3. Give people the right information before they commit. Borrowing costs, investment risk, provider status, data use and complaint rights are most useful while someone is deciding whether to borrow, invest, share data or send money.

See: AI In Canadian Financial Advice And The Governance Standards That Must Be Followed

4. Make it easy to check who you're dealing with. Consumers shouldn't have to search through several regulatory websites to find out whether a lender, investment platform or adviser is legitimate, who regulates it and what protections apply.

5. Tie financial literacy to Canada's fraud response. Knowing that scams exist isn't enough. Canada should measure whether people can recognize a suspicious approach, verify it, stop a payment, report the incident and understand what to do next.

6. Judge financial education by what people understand and do differently. Page views, downloads and campaign reach show whether information was seen. The more useful measures are whether people make better decisions, avoid preventable losses and know where to turn when something goes wrong.

Finland's 39% result isn't evidence that Canada's number would be the same. It is evidence that high digital adoption can conceal weaknesses that adoption data won't reveal. Canada already knows how many people get online and how many bank there, but do they know whether people can make sound financial decisions once they arrive.

Talking Point

Canada can measure how quickly consumers adopt digital finance. Should its next financial literacy strategy also establish how many Canadians have the minimum capability to use it safely?


NCFA Canada logoThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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Mastercard, Flybits Complete AI Purchase With Rogers Bank

September 21, 2026 | NCFA Market Activity | Artificial Intelligence And Data, Payments Infrastructure And Money Movement, Banking And Credit Infrastructure, Risk Compliance And Regtech

AI Image – AI shopping assistant completing a controlled card purchase

Flybits AI Agent Buys With Rogers Card Using Agent Pay

On September 21, 2026, Mastercard Canada, Toronto based Flybits and Rogers Bank announced a Mastercard Agent Pay purchase completed by an AI shopping assistant using a Rogers Red Mastercard. Mastercard describes it as Canada's first successful deployment connecting an AI commerce platform, card issuer and payment network.

The customer gave the Flybits powered assistant instructions and a spending limit. The agent found an eligible product within those conditions and completed the purchase using Mastercard Agent Pay. Flybits supplied the AI shopping experience and explainability around the selection, Rogers Bank supplied the card relationship, and Mastercard handled the payment through its network.

The AI went beyond recommending a product. It entered the payment process after the customer had already set the buying instructions and budget. Mastercard says the purchase was completed, although they didn't mention the merchant, transaction amount, exact payment credential or settlement details.

It's a Rogers Bank service that is still being tested and is not yet available to customers. Having said that, the companies describe a successful deployment and say further phases are planned. One completed transaction shows the workflow can function with a real issuer and payment network, but not yet if it can handle thousands of customers and merchants at scale including handling disputes.

Mastercard Agent Pay Limits What the AI Can Spend

Card networks already know how to authorize card payments. Agentic commerce adds a new control problem because the issuer and merchant need to know that the software had permission to make the purchase and stayed within the customer's instructions. Mastercard says the consumer's instructions were validated in this transaction and the agent operated within a predefined spending limit.

The agent wasn't given an open right to spend against the card. Mastercard hasn't disclosed whether the customer approved the exact product again before checkout, how long the authority remained active, whether permission could be revoked after the instruction was issued or how much detail the customer could inspect before payment. Those details become important once consumers allow software to make more of the buying decision for them.

Mastercard Agent Pay is built to keep the consumer, software agent and payment credential identifiable inside the transaction. That can give issuers and merchants a record of which customer granted authority, which agent acted and whether the payment stayed within the customer's conditions. Once software starts buying instead of only recommending, those records become part of the payment control.

See: AI Agents Gain Identity and Wallet Access WCGW

Flybits handled the AI shopping experience. Its software interpreted the customer's request, selected a product and provided an explanation for that choice. If the purchase is disputed later, the bank may need to see what the customer asked for, why the agent chose that item and whether it stayed within the approved budget.

Mastercard also offers Agent Connect to link AI agents with merchants and payment providers. The Rogers Bank and Flybits transaction goes a step further by showing an AI agent using a Canadian issued card to complete a purchase.

Flybits also plans to use Mastercard Insight Tokens in later phases. These are designed to let an AI agent use approved customer information without giving it unrestricted access to raw data. They were not part of the September 21 transaction.

Rogers Purchase Prioritizes AI Payment Liability

Existing card protections still apply to the payment underneath the AI experience. Rogers Bank and Mastercard continue to operate within fraud, dispute and network rules.

What happens when a customer genuinely authorizes software to spend but later argues that the agent misunderstood the request, chose the wrong product or bought something outside what the customer intended.

A customer might tell an agent to buy an eligible product for less than C$100 and receive a C$95 item that fits the budget but misses an important preference. The card credential may have been used legitimately and the amount may stay inside the approved ceiling, yet the customer can still dispute what the software decided to buy. That is very different from resolving a stolen card number or account takeover.

Today's announcement doesn't establish new liability rules for that situation. It also doesn't explain how responsibility would be divided among the consumer, Flybits, Rogers Bank, Mastercard and the merchant if valid payment credentials were used but the agent acted outside the customer's intended instructions. Earlier NCFA analysis of AI payment consent reached the same operating issue from the regulatory side: delegated software needs clear limits around what the user has actually authorized.

That makes transaction records commercially important. An issuer may need evidence showing who authenticated the request, which agent acted, what instructions were active, what spending ceiling applied and what the software ultimately purchased. Merchants need similar visibility to separate legitimate shopping agents from fraud bots and automated abuse. Mastercard Canada's Craig Reiff summarized the commercial constraint directly when he said “trust will determine how quickly these experiences scale.”

See: Nuvei and Visa Complete Agent Payment

Mastercard isn't working on this problem alone. Visa is developing agent payment controls, while Stripe and Google are building infrastructure that lets software agents transact within defined permissions. Canada already has another live reference point. In July, Nuvei completed a Visa agentic commerce proof of concept using a tokenized Visa credential and live payment rails, with planned controls including Know Your Agent checks and agent risk scoring. That transaction involved a merchant AI agent, so it isn't the same consumer shopping use case as today's Rogers Bank purchase.

For Canadian banks and fintechs, the Rogers transaction brings agent authority into an operating card flow. A regulated issuer has now participated in a purchase where software interpreted customer instructions, selected a product and proceeded to payment within a spending ceiling. That gives banks something concrete to assess across fraud controls, audit records, customer consent and dispute handling.

Mastercard's August survey found that 41% of 2,000 Canadian adults were open to using AI assistants for online shopping. Among respondents who already felt positively about AI shopping assistants, 53% were open to AI assisted purchasing within preset preferences and budgets. That second figure applies to the favourable subgroup rather than all Canadians, and the research was commissioned by Mastercard.

Talking Point

The Rogers Bank transaction shows that an AI agent can select a product and complete a card purchase inside a customer defined spending limit. However, when an agent buys something the customer didn't expect, can the payment record prove what the customer actually authorized and who is responsible for the decision?


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