This official statement is an oddity because we just don’t see these kinds of regulatory updates. This is a big deal. The Bank of Canada (the Bank) did something big in December 2024 – a first in fact; it released their first-ever sign-up sheet which are pre-approved for submission under the RPAA as a RPSP. Sure, that’s fancy-pantsy talk but it’s a big bad new model for the players in the Canadian payment sector and you should not let it pass you by.
“This is the first real list of what’s in and what’s out of the industry.” If you are knee-deep into such services (apps, platforms, cross-border tools, leading-edge fintech) and you don’t see your company’s name on the list, you have essentially two options:
There’s more to this list than just names; it should be read in the context that Canada’s payments industry is heading into a new order underpinned by registration, oversight, and real-world consequences for not following the rules.
Explaining the importance of the list, Ron Morrow, Bank of Canada’s Payments Strategy Executive, confirmed that the development demonstrates the ecosystem is prepared to comply with regulations. The message is unmistakable: no one is going to tolerate any lip.
This message was reinforced by Carol Brigham,Top supervision official. She glared at even those not yet registered as digital payment companies, warning that “penalties” would be putting it lightly in describing the severity of consequences.
The overview ranges from:
The list is still not exhaustive, but the Bank of Canada is convinced that a substantial chunk of the industry is beginning to talk with one another under the auspices of this new compliance regime. If fence-sitters are going to act, the time is now.
This is just the tip of a huge obedience iceberg. This will include in the following roadmap:
This isn’t just a slap-on-the-wrist correction; it’s a revamp that revises the functional landscape for such companies in this direction.
There are larger implications if you connect the dots. The move brings more transparency for consumers, making sure that if they use this kind of app, the company behind the app is already coping with regulations. “And the legitimacy of new applications is going to be less and less of an issue going into the future.”
This is a pivotal moment for operators already in business, as they must build their management teams to ensure compliance, become licensed, and invest in regulation, or risk being locked out of the market.
Regulators, too, have something to gain from this development. The list provides them with a tool which the Office had been lacking for enforcing standards, rather than simply suggesting.
This isn’t simply a digitized catalog on a government website; it’s a declaration of intent. It’s a clear message to fintech, banks, and payment innovators — if you want to do business in this region, you have to submit, follow the prescribed rules, and show people you are trustworthy.
This change, ultimately, is long overdue. For ages, the payment industry grew faster than regulators could keep pace. Now that the RPAA is in effect and the submission log is out, the Bank is finally able to be ahead of the process.
Not so much about being listed as much as the value of players working together in a competitive environment and with pressure. This update is not so much an update as a warning. The smart ones have picked up the most subtle of signals.