On November 2, Ron Morrow, the Executive Director of Retail Payments Supervision at the Bank of Canada, addressed this year’s Canadian Innovation Exchange Summit. Attended by early and growth-stage tech companies, Morrow’s message reinforced the Bank’s goal – under the Retail Payment Activities Act – to protect consumer funds, while supporting payments innovation and ensuring new payment service providers (PSPs) manage operational risks.
PSPs include various entities performing electronic payment functions such as payment processors, digital wallets and money transfer services. Morrow estimates over 2,500 entities that will come under the Bank’s regulatory supervision, including fintech companies, domestic and foreign.
Starting in 2024, Morrow expects payment service providers will be required to register with the Bank, followed by the launch of risk monitoring and compliance in 2025.