The COVID-19 pandemic accelerated digital payment use in Canada, leading to peaks in contactless and e-commerce transactions. Payment service providers (PSPs) are now challenging traditional payment facilitators—playing an increasingly important role in responding to consumer and merchant demands for more intuitive, straightforward money transfer experiences.
The growth and innovation within the Canadian payment ecosystem has exposed customers to new risks and as a result, require more regulatory attention. To mitigate operational and financial risks, the Bank of Canada (BoC) is introducing the Retail Payment Activities Act (RPAA). The aim is to build confidence in the safety, reliability, and efficiency of Canada's payment ecosystem while protecting end users from risks.
Exploring the RPAA
Rolling out in 2024, the RPAA will enforce new regulatory requirements for PSPs. These regulations provide specific guidelines for PSPs to register with the BoC to ensure a secure, stable, and seamless payment ecosystem for Canadians.
What does this mean for your organization?
With the new RPAA regulations coming into effect, PSPs may be required to strengthen compliance and regulatory reporting practices to operate at the heightened standard. To achieve long-term success, your organization must be proactive and may require to remodel your risk management and compliance frameworks according to these new requirements.
Our report outlines our insights and provides readers with five key considerations to help PSPs effectively prepare for regulatory change.
PSPs are expected to register with the BoC in 2024, hence, the time to start preparing is now. To make sure your organization is ready for these new regulations, we've developed the following roadmap for a smooth compliance journey:
Download the report to learn more about the foundational pillars and key provisions of the RPAA.