Why Canada’s RPAA Matters for the Future of Digital Payments.
Suppose you’ve ever used a payment app to send money, shop online, or transfer money back home. In that case, you’re part of a growing financial system that Canada is now moving to regulate more closely, the Retail Payment Activities Act (RPAA).
Now, when digital transactions are becoming the norm, ensuring the security and reliability of payment systems is needed. Enacted to bring clarity, protection, and trust to Canada’s digital payment ecosystem, the RPAA is set to change how payment service providers (PSPs) operate, especially platforms that hold, transfer, or process your money.
So, if you’re a consumer or just someone curious about where the payment industry in Canada is heading, here’s why you should care.
Read also: Send Money from Nigeria to Canada with the Best Rates.
What Is the RPAA?
Enacted in June 2021, the Retail Payment Activities Act (RPAA) establishes a regulatory framework for payment service providers (PSPs) in Canada. The Act aims to ensure that PSPs operate in a manner that is safe, sound, and responsive to the needs of users.
It was passed in 2021, however, it will officially go into effect on September 8, 2025. The RPAA puts in place rules for companies like money transfer apps, e-wallet providers, and other non-bank platforms, that move funds on behalf of people and businesses.
Before the RPAA, many of these platforms operated without direct oversight from the Bank of Canada. Now, the Bank of Canada will oversee them, ensuring they manage risk, keep your funds safe, and act responsibly.
📝 If a platform lets you pay, hold, or transfer money electronically, it’s probably covered by the RPAA in Canada.
What Changes Are Coming Under Canada’s RPAA?
The RPAA introduces several major shifts in the way PSPs operate in Canada:
- Mandatory Registration.
All PSPs (including AfriChange) had to apply for registration between November 1–15, 2024. The Bank of Canada anticipated registering between 3,000 to 3,500 PSPs. Post-registration, applications undergo evaluation, and the federal government conducts national security reviews to ensure the integrity of the payment ecosystem. With final decisions expected by September 2025, any company not registered cannot operate legally in Canada.
- Regulatory Oversight.
Starting September 8, 2025, registered PSPs must comply with operational risk management regulations, end-user funds safeguarding, and reporting obligations. These measures aim to enhance the safety, reliability, and efficiency of retail payment services in Canada.
- Public Registry.
On September 8, 2025, the Bank of Canada will publish a public registry listing all registered PSPs. This registry will provide transparency and allow consumers and businesses to verify the regulatory status of payment service providers before entrusting them with their money.
- Real-Time Rail (RTR) System.
The Bank of Canada plans to launch the Real-Time Rail (RTR) system in 2026. This system will enable immediate fund transfers, enhancing the efficiency of Canada's payment infrastructure. Registered PSPs will have the opportunity to become direct participants in the RTR, fostering greater competition and innovation in the payment services sector.
Why Does This Matter to You?
A core component of the RPAA is the requirement for PSPs to safeguard end-user funds. This involves holding funds in trust accounts, ensuring they are protected and not used for other purposes. Such measures are designed to protect consumers from potential losses due to PSP insolvency or mismanagement.
If you use a PSP every day, maybe to send money to family, pay for subscriptions, or receive freelance payments. If that provider isn’t regulated, your funds could be at risk in many ways you may not realise.
With the RPAA, there’s now a framework in place to protect your money and ensure that digital payment platforms are held to high standards. Knowing that your funds are protected and that PSPs are subject to regulatory oversight can alleviate concerns about the safety of online transactions. It’s also great news for FinTech platforms because it builds consumer trust, unlocks access to more financial systems (like RTR), and levels the playing field for responsible startups.
Read also: Sending Money Home: How to Avoid Low Exchange Rates and Delayed Verification.
Does the RPAA Apply Only to Canadian Companies?
No, it doesn’t.
While the Retail Payment Activities Act (RPAA) is a Canadian law, its scope extends beyond businesses physically located in Canada. If a payment service provider (PSP) is based outside Canada but offers services to individuals or businesses in Canada, they are still required to comply with the RPAA.
That means even international platforms like AfriChange and others must register with the Bank of Canada and meet all regulatory requirements if they process payments for Canadian users or operate within the Canadian market. This ensures that Canadian consumers are protected, regardless of where their PSP is headquartered.
What Does This Mean for AfriChange Users?
At AfriChange, we've always prioritized compliance, transparency, and user safety. We understand how important trust is, especially when you’re sending money to loved ones all over the world.
As the RPAA rollout continues, AfriChange is aligning closely with these standards to ensure we remain at the forefront of compliance in Canada. From implementing risk policies to safeguarding your funds, we’re committed to meeting the requirements.
For our users, that means added peace of mind. When you send money with AfriChange, you’re using a platform that takes your trust seriously and is working in step with the very best of Canada’s payment innovation.
Wrapping Up…
The Retail Payment Activities Act marks a significant evolution in Canada's approach to regulating digital payment services. By establishing clear standards for PSPs, the RPAA aims to enhance consumer protection, promote innovation, and modernize the country's payment infrastructure.
For AfriChange, aligning with the RPAA is not just about compliance; it's about reaffirming a commitment to customer trust and safety.