Retail payments supervision

Throughout 2023, the Bank of Canada continued preparing for its new mandate to supervise retail payment service providers (PSPs). This mandate is outlined in the Retail Payment Activities Act (RPAA), which received royal assent in 2021.

Retail payments supervision is one of the Bank’s five main areas of responsibility. Learn more about the Bank’s core functions.

Continuing to prepare for the Bank’s new mandate

In November, the Government of Canada published the Retail Payment Activities Regulations. They clarify details of the RPAA and outline how PSPs must register with the Bank starting November 1, 2024. The Bank helped the Department of Finance Canada draft the regulations.

At the same time, the Bank continued to build its supervisory program. This work included developing policies and guidelines to help PSPs understand their obligations under the RPAA and its associated regulations.

To prepare PSPs for the registration process, the Bank launched a website to post information and guidance documents, including:

  • the Bank’s supervisory framework and policies
  • more information on the registration process and regulatory requirements
Read the Bank’s retail payments supervisory framework.
Executive Director, Supervision Ron Morrow (right) participates in Central 1’s Momentum 2023 Summit in November. He provided an overview of and update on the Bank’s development of a retail payments supervisory framework.

Executive Director, Supervision Ron Morrow (right) participates in Central 1’s Momentum 2023 Summit in November. He provided an overview of and update on the Bank’s development of a retail payments supervisory framework.

Ensuring operational readiness

The Bank continued to build the operational capacity needed for its new mandate. This included developing:

  • policies and processes for registering PSPs, including coordinating the review of applications with the Department of Finance Canada and the Financial Transactions and Reports Analysis Centre of Canada
  • policies and practices to assess PSPs’ level of compliance with requirements for:
    • managing operational risk
    • safeguarding end-user funds
  • enforcement tools for promoting compliance
  • information technology systems to support public-facing and back-office supervisory services

Engaging with payment service providers and other stakeholders

The Bank widened its outreach activities in 2023. It launched a campaign to raise awareness among the PSPs that will be subject to the new regulations. Notably, it worked to inform PSPs of:

  • the requirements they will need to meet
  • the Bank’s supervisory role
Subscribe to the Bank’s retail payments supervision newsletter.

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Looking forward

In 2024, the Bank will:

  • publish policies that clarify key components of its supervisory framework
  • engage with PSPs on supervisory guidelines related to:
    • managing operational risks
    • safeguarding end-user funds
    • reporting incidents and significant changes
  • test the registration process through a pilot project
  • begin receiving registration applications in November
  • implement the information technology solution that will support public-facing and back-office services
  • raise awareness of the RPAA, its associated regulations and the Bank’s supervisory role
  • continue to develop relationships with other financial and payment sector regulators

More information

Moving money with confidence: Canada’s new regime for retail payments supervision (remarks by Ron Morrow, Executive Director, Supervision)

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