Fintech & payments regulation in Canada (2026)

Legal framework

Retail Payment Activities Act (RPAA, S.C. 2021, c. 23) — mandatory registration and supervision of Payment Service Providers by the Bank of Canada; complemented by the Consumer-Driven Banking Act (2024, substantially replaced by Bill C-15, 2026) for open banking, Payments Canada Act for the Real-Time Rail, and FINTRAC/PCMLTFA for AML. FCAC oversees federal consumer-protection rules for banks.

Key points: digital payments & fintech in Canada

1. 01PSP registration under RPAA

   Entities performing retail payment functions (fund transfer, holding funds, providing accounts, payment initiation/authorization, clearing) that do business in Canada must be registered with the Bank of Canada. The registration window opened 1 November 2024 with a C$2,500 application fee; a public registry of PSPs went live in October 2025.

   bankofcanada.ca bankofcanada.ca

2. 02Ongoing supervisory obligations

   Since 8 September 2025, registered PSPs must maintain a Risk Management and Incident Response Framework and safeguard end-user funds (segregation in trust accounts or backed by insurance/guarantee), with annual reporting and incident-notification duties enforced by the Bank of Canada's Retail Payments Supervision function.

   bankofcanada.ca stikeman.com

3. 03Consumer-Driven (Open) Banking Act

   The Consumer-Driven Banking Act, first enacted under Bill C-69 (2024) with FCAC as administrator, was repealed and replaced by a broader Act in Bill C-15 (Royal Assent 26 March 2026) that reassigns oversight to the Bank of Canada, prohibits screen scraping, and creates an accreditation regime; proposed regulations were pre-published in the Canada Gazette on 27 June 2026 for a 60-day consultation.

   gazette.gc.ca canada.ca

4. 04Real-Time Rail (RTR) instant payments

   Payments Canada's ISO 20022-based Real-Time Rail is scheduled to launch in Q4 2026 following the coming-into-force of the RTR by-law and rules on 24 August 2026. The exchange component is delivered by Interac and settlement will occur in central-bank money 24/7/365.

   payments.ca payments.ca

5. 05AML/CTF layer for MSBs and PSPs

   In parallel with RPAA registration, entities providing money services (including foreign exchange, remittance, crypto transfer and payment services) must register with FINTRAC as Money Services Businesses under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and comply with KYC, reporting and record-keeping obligations.

   fintrac-canafe.canada.ca osler.com

6. 06BNPL: no bespoke federal regime

   Canada has no dedicated Buy-Now-Pay-Later statute. BNPL arrangements are captured indirectly by federal cost-of-borrowing disclosure rules under the Bank Act / FCAC oversight where offered by federally regulated banks, and by provincial consumer-credit and consumer-protection legislation; the FCAC continues to monitor the sector.

   torys.com canada.ca

Timeline of decisions

1. 1 Oct 2025Decision · official
   Bank of Canada launches public Registry of Payment Service Providers

   The Bank of Canada brought its public PSP Registry online under the Retail Payment Activities Act, listing all PSPs registered to perform retail payment activities in Canada (roughly 320 entities in its initial snapshot). It is the authoritative public record of who is licensed to operate.

   Bank of Canada

2. 8 Sept 2025Decision · official
   Bank of Canada begins publishing PSP registration and refusal decisions

   The Bank started publishing its registration decisions under the RPAA, including which payment service providers were registered and which were refused, marking the end of the transition period in which applicants could operate while under review.

   Bank of Canada

3. 16 Dec 2024Guidance · official
   Fall Economic Statement completes the Consumer-Driven Banking framework

   The 2024 Fall Economic Statement set out the remaining design elements of Canada's open/consumer-driven banking framework, scope, accreditation, common rules and technical standards, building on the foundational Act passed earlier in 2024.

   Department of Finance Canada

4. 1 Nov 2024Law · official
   Retail Payment Activities Act comes into force; PSP registration opens

   The RPAA's registration regime took effect and the Bank of Canada opened its PSP Connect portal, requiring payment service providers to apply for registration (by Nov. 15, 2024) and later meet operational-risk and fund-safeguarding requirements. This created Canada's first dedicated licensing/supervision regime for retail payments.

   Bank of Canada

5. 20 Jun 2024Law · official
   Canadian Payments Act amended to widen Payments Canada membership

   Amendments (via Bill C-59) expanded eligibility for Payments Canada membership to include RPAA-registered payment service providers, credit union locals and designated clearing houses, opening access to core payment infrastructure beyond banks.

   Payments Canada

6. 20 Jun 2024Law · official
   Consumer-Driven Banking Act receives Royal Assent (Bill C-69)

   Enacted via Budget Implementation Act, 2024, No. 1, the Act establishes Canada's first legislative framework for consumer-driven (open) banking and designates the Financial Consumer Agency of Canada as lead regulator, with a new Senior Deputy Commissioner overseeing data-sharing participants.

   Parliament of Canada

7. 29 Jun 2021Law · official
   Retail Payment Activities Act enacted (Bill C-30)

   Division 7 of the Budget Implementation Act, 2021, No. 1 enacted the RPAA, creating the statutory framework requiring payment service providers to register with the Bank of Canada and manage operational risk, laying the legal foundation for retail payment supervision.

   Parliament of Canada

8. 23 Jun 2008Law · official
   Mandatory MSB registration regime begins at FINTRAC

   Following PCMLTFA changes, all money services businesses (money transfer, foreign exchange, money orders) were required to register with FINTRAC, aligning Canada with FATF standards and establishing the core registration regime that still governs fintech money movers.

   Government of Canada

9. 1 Jan 1980Law · official
   Canadian Payments Act establishes the Canadian Payments Association

   The Canadian Payments Act created the Canadian Payments Association (rebranded Payments Canada in 2016) to operate national clearing and settlement systems, the foundational infrastructure and membership framework that fintech access to payments rails is now being built upon.

   Payments Canada

Sources

1. 1.bankofcanada.ca/regulatory-oversight/retail-payments/
2. 2.bankofcanada.ca/core-functions/retail-payments-supervision/information-for-payment-se
3. 3.bankofcanada.ca/regulatory-oversight/retail-payments/supervisory-framework/
4. 4.stikeman.com/en-ca/kh/canadian-ma-law/bank-of-canada-rpaa-payment-service-provider
5. 5.gazette.gc.ca/rp-pr/p1/2026/2026-06-27/html/reg3-eng.html
6. 6.canada.ca/en/department-finance/news/2026/06/government-pre-publishes-regulatio
7. 7.canada.ca/en/financial-consumer-agency/news/2024/06/fcac-welcomes-new-mandate-t
8. 8.payments.ca/systems-services/payment-systems/real-time-rail-payment-system
9. 9.payments.ca/canadas-real-time-rail-program-resumes-renewed-momentum
10. 10.fintrac-canafe.canada.ca/msb-esm/msb-eng
11. 11.osler.com/en/expertise/services/financial-services/financial-services-regulator
12. 12.canada.ca/en/financial-consumer-agency/corporate/mandate.html
13. 13.torys.com/our-latest-thinking/publications/2022/01/expect-increased-regulatory-