Karsten Wenzlaff, Advisor
August 26th, 2025
October 2, 2026 | NCFA Insight | Entrepreneurship And Startups, Education And Talent, Innovation And Economic Development, Venture Funding And Building

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.
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.
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.
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.
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 |
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.
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.
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.
The 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
![]() | ![]() | ![]() |
|---|---|---|
![]() | ![]() | ![]() |
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

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?
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.
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:
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.
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
The 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
![]() | ![]() | ![]() |
|---|---|---|
![]() | ![]() | ![]() |
Sep 25, 2026

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.
Canada's e-commerce market continues to mature, but founders face a specific set of constraints:
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.
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 | 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 |
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
When to choose Stripe: You want one stack for online + subscriptions + future POS, and your team can manage webhooks, dispute evidence, and payout reconciliation.
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
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.
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
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.
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.
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.
Choose Stripe if:
Choose PayPal if:
Choose Adyen if:
Run both Stripe + PayPal if:
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.
Canadian founders should stay aware of evolving payment oversight:
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:
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.
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.
The 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
![]() | ![]() | ![]() |
|---|---|---|
![]() | ![]() | ![]() |
September 22, 2026 | NCFA Story Intelligence | SME Finance And Business Banking, Open Banking And Open Finance, Capital Formation, Competition And Market Structure

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 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.
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
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.
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.
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
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.
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
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
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.
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.
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?
The 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
![]() | ![]() | ![]() |
|---|---|---|
![]() | ![]() | ![]() |
September 21, 2026 | NCFA Market Activity | Artificial Intelligence And Data, Payments Infrastructure And Money Movement, Banking And Credit Infrastructure, Risk Compliance And Regtech

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.
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.
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.
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.”
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.
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?
The 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
![]() | ![]() | ![]() |
|---|---|---|
![]() | ![]() | ![]() |