Saturday, November 23, 2024
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Bank of Canada opens registration for retail payment service providers

The Bank of Canada has announced the commencement of the registration period for retail payment service providers (PSPs) under the Retail Payments Activities Act (RPAA). This event marks a significant development in the regulation of the payments industry, as well as for the Bank, which will now oversee PSPs. Companies affected by this legislation have until November 15 to submit their applications through the Bank’s PSP Connect portal.

"Today marks a big step toward giving Canadians added confidence in the safety and security of retail payment service providers," stated Ron Morrow, Executive Director of Payments, Supervision, and Oversight at the Bank of Canada. "By registering with the Bank and complying with regulations, payment service providers will demonstrate that they are managing key risks and keeping their customers' funds safe."

Since passing RPAA in 2021, both the Bank of Canada and the Department of Finance have engaged in extensive consultations with industry stakeholders to develop necessary regulations and guidelines for PSPs post-registration.

"We received outstanding cooperation from companies large and small, and I want to thank them all for their effort," said Carol Brigham, Managing Director of the Bank’s Supervision Department. "Now it’s time for companies that perform any of the five payment functions to fulfill their legal obligation to register."

To assist PSPs in determining if they fall within RPAA's scope and guide them through registration, the Bank has provided comprehensive resources on its website. These include supervisory policies and guidelines detailing how it will execute its supervisory role alongside a step-by-step registration guide.

Following this registration period, applications will be evaluated by both the Bank and federal government entities conducting national security reviews. A list of registered PSPs is scheduled for publication on September 8, 2025, when risk management regulations take effect.

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