Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Does CUSMA Support Fintech Services Across Borders?
CUSMA | April 16, 2025
Image: Freepik/rawpixel.com
Fintechs and Digital Finance Firms Can Still Scale in the U.S. and Mexico
If you’re building a fintech company in Canada, there’s a good chance you’ve thought about scaling into the U.S. or Mexico. But no doubt rising trade tensions and ever evolving regulations can raise questions about CUSMAs current status for financial technology service providers.
Earlier this month, President Trump introduced wide sweeping tariffs (he referred to as 'Liberation Day') on imports from more than 180 countries. Canada and Mexico were largely exempt (for now) thanks to the Canada-United States-Mexico Agreement (CUSMA/USMCA), which replaced the North American Free Trade Agreement (NAFTA) in 2020.
See: Digital Export Trends and Global Trade Fintech Opportunities
CUSMA includes specific rules that make it easier for digital finance providers to operate across borders. Whether you're running a payments platform or a digital lending service, CUSMA could already be working in your favour.
What Fintechs Need to Know About CUSMA
Chapter 17 – Financial Services
If you operate a regulated fintech like one that moves money, offers loans, or handles investments then Chapter 17 – Financial Services is what applies to you. It helps you access the U.S. and Mexico markets but doesn’t fully protect you from things like local data rules, and applies to financial services such as:
- Digital banking and payments
- Lending, insurance, or wealth management
- Embedded finance products tied to licensed providers
See: Overcoming Barriers to Growth in Financial Regulation
Chapter 17 legally ensures market access and fair treatment but it doesn't stop governments from requiring certain data to be stored locally. So if you're offering regulated cross border services, your operations could still face compliance hurdles around data infrastructure.
Chapter 19 – Digital Trade
If your business focuses on digital tools that support, but don’t directly provide financial services, then you might fall under Chapter 19 - Digital Trade. Chapter 19 lays out stronger protections for items like cross-border data flows and electronic transactions but it doesn’t apply to regulated financial services. Some business model examples that may qualify under Chapter 19 include:
- Digital contracting or e-signature platforms used in financial workflows, such as mortgage pre-approvals or investment account setup
- Financial literacy and education platforms that help users understand credit, debt, or budgeting without offering licensed advice or handling money
- Tax prep or compliance reminder tools that provide content or automation but don’t process payments or require regulatory oversight
See: Insights from Jamie Dimon’s 2024 Letter to Shareholders
If you’re unsure where your business fits, it’s advised to contact your export trading representative or if you need help with CUSMA compliance you can contact CanadExport CUSMA compliance support line at 1‑833‑760‑1167. Alternatively, it's worth getting legal advice to help classify your service correctly to avoid unnecessary risks under CUSMA protections.
What About the New U.S. Tariffs?
During March and April of 2025, the U.S. government announced tariffs on over 180 countries, igniting global trade anxiety. Canada and Mexico were mostly exempt but only for products and services that are compliant with CUSMA (not for sectors like Steel and energy), and the pressure has forced Ottawa and allies to diversify supply chains to protect economic sovereignty.
After speaking with President Trump, Prime Minister Mark Carney called the old U.S.–Canada trade relationship “over” and is now pushing for a broad renegotiation of CUSMA and defence security to reflect Canada’s modern priorities. He announced a 25% retaliatory tariff on U.S. autos that do not meet CUSMA standards, further escalating pressure around trade terms.
See: Carney Shakes Up Leadership and Vows to Protect Canada
For financial technology firms, the current economic environment is volatile with new tariff threats being contemplated by the Trump administration day by day, so stay current with evolving trade rules and do not assume that rules of 2020 still protect your business in the say way in 2025.
Why It Matters
For Canadian fintechs still looking to scale into the U.S. or Mexico, CUSMA still provides a foundation to operate if you know how to use it. Make sure you understand the classification of your business and revenue exposure across borders. This is a time of rising trade barriers, so any clarity around CUSMA could be a competitive advantage to support your growth.
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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