Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Payments, Transfers, Rewards
European Fintech 2024: Profits Rise, Unicorns Fade
Fintech Report | Oct 16, 2024
Image: State of European Fintech 2024 (Finch Capital)
Finch Capital's 2024 report reveals a shift in Euopean fintech towards profitability, sustainable growth, and strategic M&A
European fintech in 2024 is about consistent financial gains over rapid expansion. Fintech Capital released the 9th edition of the "State of European Fintech 2024" (37 page PDF) lifting the veil on recent market developments and adjustments to investment thesis' that are influencing this sector, such as the dominance of the UK, the role of AI and digital currencies, and the resurgence of digital banks. This post looks to highlight the key trends and insights that matter to fintechs and investors.
1. Current State of Fintech in Europe (2024)
- European fintech funding fell 25% in 2024 compared to last year.
- Despite challenges there are signs of recovery especially in mid-sized mergers and acquisitions (M&A).
- Companies are focusing more on more consistent profits instead of fast growth.
- Sustainable business models are preferred now instead of chasing high valuations.
- The UK leads the market, receiving 65% of the total fintech funding.
- Other regions like the Nordics and the Netherlands are maintaining stability despite the overall downturn.
2. Funding and Market Insights
- In the first half of 2024, total fintech investments reached €2.9 billion across 443 deals, down from €3.8 billion and 548 deals in the same period of 2023.
- Investors are being more selective, prioritizing companies with clear paths to profitability.
- Large late-stage investments have decreased while smaller more sustainable rounds are rising.
- Higher interest rates have boosted challenger bank profits, and fintechs with deposits.
- There's early stage interest for crypto and digital assets (especially stablecoins) as they challenge traditional banking models although the market continues to be volatile.
See: DLA Piper’s Tech Index 2024 – Highlights for Fintechs
- Insurers have embraced AI to streamline operations, with over 80% utilizing AI in underwriting and risk assessment. This insurtech trend points to increased efficiency and reduced operational costs.
- Deals in the mid-sized segment (under €500 million) have increased, making up 32% of the global market for such deals. This is similar to the U.S. in terms of volume but smaller for larger transactions.
- Companies with higher profit margins (EBITDA) are valued more with some seeing valuations over 10 times their earnings.
- The payments sector is seeing more mergers aimed at boosting efficiency. Buy Now, Pay Later (BNPL) is making a comeback, thanks to better risk management powered by AI.
3. Geographic Insights
- The UK is attracting 65% of Europe’s fintech investment and has a strong M&A market driven by a focus on profitability.
- Nordics and Netherlands remain steady despite economic challenges, with consistent funding and a focus on profitable, mature companies.
See: How Fintechs Are Unlocking Value in Private Markets 2024
- Government support in Ireland and Germany is nurturing tech startups, so possible growth rebound in 2025.
- Poland has a vibrant early-stage investment scene but lacks the follow-up funding needed for companies to scale up in later stages (Series A and B).
Key Takeaways
- The mid-sized M&A market in Europe offers stable returns, so an interesting time for Canadian venture funds to explore deals in the UK and Nordics?
- Increasing use of AI in insurance and banking creates opportunities for Canadian fintechs with AI expertise to enter the European market.
- The focus on sustainable business models and B2B solutions aligns well with a longer term investment approach. Germany and the Netherlands have strong government support, which may be attractive for Canadian investors.
European Fintech Outlook in 2024
European fintech in 2024 is all about stability and consistent growth. Finch Capital’s latest report shows that the focus has shifted from grow at all costs expansion to more sustainable models and profits. For more perspective, check out Chris Skinner's post here.
See: Global Fintech Funding Sees a Boost in Q2 2024
Although the UK remains the leader (65% of investments), government support in the Nordics and Germany may create a good time to explore AI and mid market M&A in Europe for Canadian investors.
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
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Canada’s Retail Payments Boom: $11.9 Trillion Growing Fast
Payments Report | Oct 4, 2024
Image: Canada Payments Payment Methods and Trends Report 2024
Canada's Retail Payments Surge: $11.9 Trillion in Transactions in 2023
Payments Canada recently published it's 'Canadian Methods and Trends Report 2024' (91 page PDF report; see release). In 2023, Canada’s retail payments saw 6% growth over the previous year (significant) totalling $11.9 trillion across 21.7 billion transactions. The main takeaway is that digital payments are leading the way, cash use is changing, contactless payments are becoming more popular, and online and international payments are on the rise.
Digital Payments Lead the Way
- 86% of the total payment volume was digital
- 75% of the total payment value was made digitally
Payment Method Breakdown
- Credit Cards made up 33% of total transaction volume
- Debit Cards accounted for 30% of payment volume
- Electronic Funds Transfer was 15% of the payment volume
Canadians are increasingly adopting digital solutions due to their speed, convenience, and efficiency across a wide range of transaction types.
Image: Canada Payments 2024 Trends report figure 1
See last year's report: Insights Into Canada’s Evolving Payments Landscape
Cash Transactions
- 15% increase in cash transaction volume year-over-year
- 11% of all transactions were made in cash
- While digital payments continue to grow, cash still remains important for budgeting and managing day to day spending, and also ensuring privacy and fee-free transactions
Contactless Payments and E-commerce Boom
- 53% of all retail payments were contactless (includes both tap-to-pay cards and mobile payments)
- E-commerce transactions grew 5.5% year over year in value for a total of $71.6 billion
- Consumers have a preference for touch-free, fast, and convenient shopping experiences in both online and in-store
Prepaid Cards Fastest Growing Card Option
- 10% increase in transaction value from the previous year
- $69 average transaction value
- Convenience and speed with rewards tied to prepaid card usage
See: Feds Promise Open Banking Laws in 2024 and to Broaden Access to Payments Canada
Online Transfers Surpass Cheques
- 14% increase in the number of transactions.
- 20% increase in transaction value.
- Online transfers like Interac e-Transfer are preferred for speed, flexibility, ease of use, and security
Smart Devices and Global Payments Gain Traction
- 13% of Canadians used smart devices or social media to make purchases. Includes platforms like Alexa, Google Home, and social media sites like Instagram and Facebook
- 20% of Canadians sent money abroad, marking a 33% increase from 2022
- Average transfer value was $1,125 for personal payments sent abroad
- Canadians are becoming more comfortable using technology for sending global payments
See: New Bank of Canada Case Scenarios for Retail Payments
Generative AI Adoption by Businesses
- 49% of Canadian businesses plan to leverage AI for operational improvements
- Top AI applications include:
- 44% of businesses see AI helping with fraud detection and prevention
- 37% automated payment processing (reducing errors and improves efficiency)
- 29% aim to create personalized payment options and experiences.
Conclusion
Payments in Canada are moving towards contactless, digital, and AI-driven solutions. Traditional payment methods like cash and checks are still used in some cases, so a good mix of payment options. Canadians value a range of payment methods that offer convenience, security, and ease of use.
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
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JPMorgan vs. Regulators Over Zelle Fraud Scams
Payments | Oct 4, 2024
Image: Freepik
JPMorgan Chase Considering Lawsuit Against Consumer Financial Protection Bureau (CFPB) Over Zelle Fraud Claims
JPMorgan Chase is thinking of suing Consumer Financial Protection Bureau (CFPB) after the CFPB claimed that the bank failed to remove fraudulent accounts from the platform and didn't reimburse scam victims on the peer-to-peer payment network Zelle, which is owned by a consortium of 7 major US banks and setup to compete with fintech giants, Paypal and Venmo in 2017. Previously, the U.S. Senate scrutinized JPMorgan for it's handling of these same Zelle payments network fraud claims.
See: CFPB Eyes Digital Payment Regulation for Big Tech
JPMorgan strongly disagrees with this claim and hinted in a recent financial filing that they make consider taking the CFPB to court over the issue. This is certainly an interesting twist where a major bank may sue their regulator. Lots of tension as incumbent banks, fintechs, and regulators balance client protection and fraud concerns in a quickly evolving market.
What's the Issue With Zelle and Fraud?
- A U.S. Senate report claims that Zelle handled transactions totaling more than $800 billion in the previous year of which $166 million was challenged as fraudulent taking place at one of 3 large banks including Wells Fargo, Bank of America, and JPMorgan Chase.
- Only around 38% of these claims received reimbursement.
- According to JPMorgan, it reimburses 100% of transactions that are considered "unauthorized," but the way such transactions are classified is the issue. Refunds are unlikely if a consumer voluntarily pays money to someone, even if they were defrauded because the customer 'authorized' it.
- The bank has now included a warning message to help customers stay safe and understand that refunds may not be available for certain transactions.
- According to Zelle, 99.9% of its transactions are trouble-free and as a precaution now warns consumers of scammers.
Larger Debate
The CFPB believes that banks should do more to identify and prevent fraudulent/fake accounts, and customers should be compensated when they are scammed.
See: JPMorgan’s New Programmable Payments in Blockchain
Part of the push is from Biden's administration for a wider regulatory effort to protect consumers and lower costs associated with digital payments, overdrafts, and credit card fees. JPMorgan's potential lawsuit could set a precedent for how banks interact with regulators and encourage other financial institutions to challenge regulations more aggressively.
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
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Loop Raises $6.4M CAD for SMB Global Finance Platform
Bank On Loop | Sep 17, 2024
Image: Loop Team/Linkedin
Loop Brings Total Funding to $10M CAD To Build Global First Financial Platform for Small and Medium Businesses
Loop, a Toronto-based fintech company, announced today that they have secured an additional $6.4 million CAD in its most recent investment round, bringing its total fundraising to more than $10 million CAD. This investment will help Loop accelerate its objective to establish the first 'global by default' financial services platform geared to small and medium-sized companies (SMBs), enabling them to handle cross-border payments, currency conversion, treasury management, and international financial operations. Key investors in this round of fundraising included Mistral Venture Partners, Luge Capital, Graphite Ventures, Wedbush Ventures, and Conconi Growth Partners.
See: How the Global Remote Workforce is Changing the Model Work Mindset
Cato Pastoll, CEO and co-founder of Loop (NCFA Advisor):
“Modern companies are built to operate globally, yet the process of setting up banking services to conduct business in a foreign market in order to send, receive and manage money is an expensive and challenging barrier to overcome for businesses.”
Overview of Loop's Journey
- Lending Loop (2015-2021): Lending Loop was co-founded in 2015 by Cato Pastoll and Brandon Vlaar, as Canada's first licensed peer-to-peer (P2P) lending platform, supporting small businesses with marketplace loans from a network of investors. This strategy was about making it easier for SMBs to source inexpensive loans while allowing investors to earn profits by supporting local businesses.
- Rebranded to Loop (2022): In 2022 Lending Loop rebranded itself as "Loop" and expanded its services beyond lending. Understanding that businesses face challenges beyond financial matters when operating on a global scale, Loop took on the task of addressing issues impacting SMBs, such as facilitating cross border payments, managing currency exchanges and treasury operations.
See: Open Banking: Revolutionizing Financial Data Sharing
- Bank on Loop (2024 to present): As Loop continued to grow, the company leaned further into its mission to create a "global-by-default" financial services platform for SMBs. Now branded as Bank on Loop, the company aims to provide businesses with streamlined tools to manage international finance operations. Loop's services have gained traction with Canadian businesses, as it fills a gap left by large banks that often overlook the needs of SMBs with global services.
Raif Barbaros, Partner at Mistral Venture Partners:
“Although most US and Canadian exporters are SMBs, they are grossly underserved by the large banks, especially in cross-border banking. Loop’s innovative platform is unlocking global growth opportunities for these businesses. We’ve doubled down on our investment because we believe in the overall thesis, as well as the Loop team to lead this transformation. We’re excited to support their continued success."
Why It Matters
By streamlining banking services and reducing costs for businesses expanding globally, Bank on Loop is positioning itself as the go-to solution for global financial management.
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
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BoC Conducts Mock PSP Registration Ahead of Nov 1, 2024
Payments Regulation | Aug 28, 2024
Image: Freepik/Drazen Zigic
Preparing for PSP Registration on November 1 under the Retail Payment Activities Act (RPAA)
Under the Retail Payment Activities Act (RPAA), PSPs will be subject to Bank of Canada supervision to ensure the security and dependability of their services.
- With the November 1, 2024 registration window approaching, PSPs should be getting ready to comply with the Bank of Canada’s requirements.
- PSPs are expected to have submitted their registration applications no later than November 15, 2024. It takes time so you need to be prepared.
Feedback From the Registration Pilot
On April 9, 2024, the Bank of Canada carried out a registration pilot with 54 voluntary PSPs to help evaluate the PSP Connect online portal and application procedure prior to the official registration process. There was a diverse range of companies participating in the pilot including cross-border payments, digital wallets, BNPL and others who submitted mock registration forms and provided feedback about the application process and the online portal and accompanying materials.
Overall, the PSP Connect site was described as intuitive and user-friendly by pilot participants, however a few recommendations were made:
- Simplify the account creation process
- Simplify the application form as much as possible
- Clarify the terminology and concepts used online and in the documents (for consistency and understanding)
See: Guide: PSP Registration with Bank of Canada (RPAA)
There were also some technical difficulties that appeared in the feedback re: browser compatibility and mobile responsiveness. Compared to mobile platforms, users had fewer problems using browsers Microsoft Edge or Google Chrome on desktop computers. Lastly, worth noting that the application is comprehensive and takes a lot of time to complete.
Otherwise, technical staff are working to streamline the process and improve the data exchange process.
* Important BoC Webinar* on October 3, 2024 - Getting Ready to Register
On Oct 3, the BoC will give PSPs a detailed rundown of the registration procedure, and PSPs will get a chance to ask questions about the process, PSP Connect Platform and tools/services. For PSPs looking for a positive registration experience, you don't want to miss this webinar!
Register for the BoC webinar --> here
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
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Help the BoE Shape the Future of Payments and Digital Money
Discussion Paper | Aug 5, 2024
Image: Pixabay/JESHOOTS com
Bank of England's Approach to Innovation in Money and Payments
As a leader in global fintech, the Bank of England (BoE) published a key discussion paper last week called, "The BoE's Approach to Innovation in Money and Payments," a proactive approach to guiding the future of financial innovations. With such a quickly evolving digital finance environment, it's important for the UK to preserve it's fintech leadership by prompting key fintech industry stakeholders to address numerous concerns to balance practical innovation while ensuring financial stability.
5 Initiatives of the Latest BoE Thinking
1. Real-Time Gross Settlement (RTGS) Renewal Programme
The BoE is improving the Real-Time Gross Settlement (RTGS) system, which is core to the UK's financial infrastructure. One of the updates is the introduction of Omnibus Accounts, which facilitate the use of central bank funds for the settlement of tokenized assets. These enhancements are intended to increase interoperability, increase system resilience, and extend access.
- Banks can pool their reserves at the BoE through Omnibus Accounts, which makes it easier to exchange tokenized assets on privately run platforms. This increases security and confidence by guaranteeing that transactions are backed by funds from the central bank.
- The updated RTGS system has a modular design that makes it possible to update it more quickly and effectively in response to changing market demands and emerging technology.
See: Bank of England Launches New Data Innovation Strategy
- The Bank of England fosters competition and innovation by granting greater access to settlement accounts to non-bank payment service providers (NBPSPs) and updating access regulations.
- The goal of these improvements is to make it easier to incorporate central bank funds into always-on payment systems. Examples of these improvements include extended operation hours and a synchronization interface with external ledgers, such as DLT.
2. Digital Securities Sandbox
The BoE has created a Digital Securities Sandbox in collaboration with the Financial Conduct Authority (FCA). Through the provision of a regulated environment, market players can securely issue and trade digital securities under this initiative, which promotes innovation while maintaining regulatory compliance. The sandbox seeks to:
- Encourage innovation by enabling the safe testing of novel financial instruments and technological advancements.
- Making sure that trading in digital securities doesn't jeopardize the financial system's overall stability.
- Upholding market integrity and strict guidelines for openness and equity in the online securities market.
3. Exploration of Private Digital Money
Stablecoins and tokenized deposits are examples of private digital currencies that the BoE is actively looking into integrating into the banking system. The creation of a legal framework to ensure the security and dependability of these innovations is the main goal.
See: UK’s Digital Pound Initiative Sparks Privacy Discussions
- Creating regulatory rules and protections for the creation and application of virtual currency.
- Mitigating risks and concerns about consumer protection and financial stability that may arise from incorporating new payment methods.
- Promoting the secure implementation of tokenized deposits and stablecoins to improve the accessibility and efficiency of the payment system.
4. Retail Central Bank Digital Currency (CBDC)
The BoE is considering the potential of a digital pound or retail CBDC to improve the efficiency of the payment system by offering a digital alternative to real currency. Among the retail CBDC's main objectives are:
- Ensuring that a digital pound coexists with traditional cash without taking its place.
- Ensure competition by establishing a public forum for payment innovation in the private sector.
- Cutting expenses for both customers and companies while simplifying payment procedures.
5. Programmable Platforms
Programmable systems like those built on Distributed Ledger Technology (DLT) are being investigated by the BoE for their ability to lower barriers while smart contracts have the potential to completely transform financial interactions. Having said that, most novel innovations come with regulatory challenges, and as such the BoE's priorities are currently to:
See: OMFIF Podcast: Smart Contracts and Retail CBDCs
- Evaluate the potential benefits of programmable platforms—like automation and efficiency gains—against the hazards involved.
- Establish a regulatory framework for safe, secure, and efficient application of programmable platforms in the financial industry.
- Promote (not stifle) innovation while preserving integrity and financial stability.
Primary Questions for Feedback
In order to strike the right balance and approach to incorporating new financial innovations, the BoE is seeking stakeholder feedback, such as:
- What are the significant benefits and risks of adopting programmable platforms in payments and settlement?
- How likely is it that wholesale financial markets will adopt these platforms at scale?
- What are the potential risks and benefits of tokenized deposits and stablecoins for wholesale transactions?
- How can these digital forms of money ensure the singleness of money?
- What functionalities should a retail CBDC include to be most effective?
- How can a retail CBDC support innovation, choice, and efficiency in payments?
- What key cybersecurity concerns arise with new payment technologies, and how can they be mitigated?
- What regulatory frameworks are necessary to manage new vulnerabilities introduced by digital currencies and payment innovations?
- How can innovations in money and payments avoid exacerbating the digital divide?
See: Inside OMFIF’s Tokenisation Report: New Rails of Finance
- What steps can ensure new financial technologies are accessible to underserved populations?
- How will the rise of private digital money affect traditional banking structures?
- What implications do digital currencies have for monetary policy and financial stability?
Conclusion
Hats off to the BoE who is obviously committed to balancing security and innovation. Soliciting feedback to ensure the future of digital money and payments is absolutely essential for meaningful progress. Contribute by October 31, 2024 to this important discussion this important conversation.
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
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Guide: PSP Registration with Bank of Canada (RPAA)
Payments Regulation | Jul 30, 2024
Image: Pixabay/geralt
Do I Need to Register as a Payment Service Provider (PSP) with the Bank of Canada under the New Retail Payment Activities Act?
The Retail Payment Activities Act (RPAA) requires Payment Service Providers (PSPs) in Canada to register with the Bank of Canada. This article goes over the basic criteria, FAQs, case scenarios, and the registration process, and includes various useful links and resources.
Retail Payments Registration Criteria (more)
- Based on your payment services or function --> PSPs must register if they perform critical payment operations such financial transfers, account maintenance, or payment processing.
- Operate in Canadian Markets --> Registration is necessary for any PSPs operating in Canada or targeting Canadian clients.
- Some exemptions --> Certain organizations, such as government agencies and certain merchant programs, may be excluded.
Frequently Asked Questions (in detail)
Do I need a license?
- The RPAA requires registration, not licensing. The Bank of Canada maintains a list of registered PSPs. See the supervisory framework and registration requirements.
What if I'm operating now but not registered?
- During the transition period from November 1, 2024 – September 7, 2025, PSPs must apply for registration within 15 days of starting operations.
- After September 7, 2025, registration is required before executing any retail payment operations.
Are there any benefits of registration?
- Registration increases market confidence, promotes competition, and may provide access to essential payment systems.
See: Bank of Canada Publishes New Retail Payment Enforcement Policies
What is the scope of the RPAA?
- The RPAA applies to all PSPs engaged in retail payment activities in Canada, including international PSPs serving Canadian users.
Do cross-border transactions need to be reported?
- PSPs must record cross-border transactions, unless they are ancillary to other services. The Bank of Canada will offer guidance on reportable transactions.
Are there any exemptions?
- Banks and other financial institutions regulated under different Canadian laws may be excluded from the RPAA's requirements.
Registration Case Scenarios (more)
- Affiliated entities linked by control or ownership must register if they provide payment services.
- Agents who act on behalf of another entity must register if they make payments.
- Designated payment systems of the financial system.
- Foreign firms providing payment services in Canada must register.
- Merchants or group of merchants that issue store-specific payment instruments may be exempt from registration.
- Merchants who provide incidental payment services may need to register.
- Software providers who offer payment accounting software and invoice payment services.
- Providers of POS systems that process payment information must evaluate whether registration is required.
Registration Process
- PSPs must provide detailed information about their services and third-party relationships. See guide in preparing for registration application.
- A $2,500 non-refundable fee is required for registration.
- Applications filed during the transition period will be processed beginning September 8, 2025. Registration does not expire, although it can be withdrawn under certain circumstances.
See: BoC Speech: Essence of the New Retail Payment Activities Act
Conclusion
Registration as a PSP under the RPAA is required for compliance and market participation in Canada. See the Bank of Canada's FAQ page for more information.
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
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