The Bank of Canada said today it has opened the registration period for retail payment service providers (PSPs) that are subject to the Retail Payments Activities Act (RPAA).
The start of registration marks an important milestone for the payments industry as it comes under regulation, as well as for the Bank as it takes on the mandate of supervising PSPs. Companies that are in the scope of the Act have until November 15th to submit an application 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,” said Ron Morrow, Executive Director of Payments, Supervision, and Oversight at the Bank of Canada. “By registering with the Bank and complying with the regulations, payment service providers will demonstrate that they are managing key risks and keeping their customers' funds safe.”
The Bank has been working toward this milestone since the RPAA was passed in 2021. Since then, the Bank of Canada and the Department of Finance have held extensive consultations with the industry to develop regulations and a set of guidelines that PSPs must follow once they’ve registered with the Bank.
“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.”
The Bank has published a wealth of material on its website to help PSPs determine if they are in scope of the RPAA, and to help them with the registration process if they are. These include supervisory policies and guidelines that clarify how the Bank will carry out its new role, as well as a step-by-step guide to the registration process.
After the registration period, the Bank will evaluate all applications and the federal government will conduct national security reviews of the applicants. The Bank will publish a list of all registered PSPs on Sept. 8, 2025. At that point, the regulations for managing risk and safeguarding funds will come into effect.
Topic(s):
Retail payments supervision