Comments On Proposed Retail Payments Activities Act Regime Raise Concerns For Small Payment Service ‎providers

While the Retail Payment Activities Act, 2021 ("RPAA") became law in 2022, it is currently awaiting the implementation of additional regulations and guidance from the Bank of Canada before it comes into effect. In particular, comments on the Retail Payment Activities Regulations ‎‎("RPAR") received by the Bank of Canada raise concerns on the effect the RPAR will have on small payment service providers ("PSP"s) operating within Canada.

The Bank of Canada is in the process of reviewing these comments in order to determine whether any changes to the draft RPAR are required. A final version of the ‎regulations will then be published in Part II of the Canada Gazette, which is anticipated in the coming months. Once published, guidance on specific topics related to the RPAA and the final regulations will be issued.