Changes to the Canadian Payments Act receive royal assent
Author
Lisa Sattler
Director of Policy and Government Relations
With 20 years of experience in payments, Lisa works closely with regulators, financial institutions, stakeholders and international counterparts to ensure Payments Canada’s policies and rules remain relevant and meet the needs of Canadians.
I’m thrilled to share that the proposed changes to the Canadian Payments Act (CP Act) to expand Payments Canada’s membership have received Royal Assent, the final step required for a bill to become law. The changes were included in the 2023 Fall Economic Statement Implementation Act, also known as Bill C-59, and will come into force on a day/days to be set by the Governor in Council.
With these changes, Payments Canada’s membership eligibility will be expanded to payment service providers, credit unions that are members of their provincial centrals and clearing houses of systems designated under the Payments Clearing and Settlement Act. Reaching Royal Assent represents a critical milestone toward modern payments in Canada and the culmination of a joint advocacy effort from leaders across the Canadian payment ecosystem.
Payments are important
Expanding Payments Canada’s membership eligibility lays the foundation for greater innovation and competition in payments services, meeting the ever-evolving needs of Canadians. For small businesses that continue to struggle with the cost of accepting payments, broader access could lead to lower overall operating costs. For consumers, it could mean more inclusive, accessible or affordable payment options.
However, expanded membership is just one piece of the puzzle that will support modern payments in Canada. One of the other critical pieces is the Retail Payment Activities Act (RPAA), a legislative framework that assigns the Bank of Canada the responsibility of supervising payment service providers in Canada. The RPAA will fully come into force in September 2025. Requiring that any participants in our systems are regulated entities is an important foundation to ensure the continued safety and soundness of our systems.
The third piece is Canada’s forthcoming Real-Time Rail (RTR), a new national real-time payment system that will initiate data-rich payments and receive irrevocable funds in seconds, any time of day or night, 365 days a year. Combined with broader access to Canada’s payment infrastructure through changes to the CP Act and the implementation of RPAA, the RTR will be a platform for our members to foster safe innovation and more payment options for Canadians and their businesses.
I am very proud of the work that my colleagues at Payments Canada, the Government of Canada and payment industry leaders have put into advancing these critical legislative changes for the benefit of Canadians. But our work is not done yet!
What’s next?
Payments Canada is diligently reviewing our by-laws and rules in order to assess what consequential changes are needed to reflect the details of the legislation. Once we know the nature of the possible changes to our legal framework, we will consult broadly with the ecosystem. Any proposed changes to our by-laws will then go through the regulatory approval process, including drafting with the Department of Justice and publication in the Canada Gazette. This work will ensure that as we broaden access to our systems, we are doing it in a way that is safe, sound and risk-based.
All of us at Payments Canada look forward to working with you to bring the benefits of broader access to Canada’s payment infrastructure to life for consumers, businesses and our economy, while maintaining the safety and soundness of our systems.
Lisa Sattler
Director of Policy and Government Relations
Payments Canada
