Bank of Canada Registers Payment Service Providers

OTTAWA (Reuters) – The Bank of Canada has begun registering payment service providers (PSPs) to enhance regulation and ensure secure digital transactions.

Critics argue that Canada's digital payment infrastructure is outdated compared to countries like the UK and Australia, and has even fallen behind many developing nations.

Ron Morrow, executive director of payments, supervision and oversight at the Bank of Canada, stated, "Today marks a big step toward giving Canadians added confidence in the safety and security of retail payment service providers."

A PSP is any company that facilitates electronic storage or transfer of money, including firms like PayPal and Square, which provide digital wallets and point-of-sale terminals.

Currently, the major banks dominate Canada's payment systems; critics highlight this has resulted in excessive fees and delays.

Following the registration period, the Bank will assess applications, and the federal government will perform national security reviews. A comprehensive list of registered PSPs will be published on Sept. 8, 2025. From that date, regulations focused on risk management and fund protection will be enforced.