Amendments to the Canadian Payments Act have been implemented as of September 29, according to finance and national revenue minister François-Philippe Champagne.
The changes broaden membership eligibility in the Canadian Payments Association (Payments Canada); new entities may now apply for membership and directly participate in the money-moving national payment systems. The Act was modified on June 20, 2024.
“The legislative amendments expand membership eligibility to payment service providers registered and supervised by the Bank of Canada under the Retail Payment Activities Act regime; credit union locals that are members of a credit union central; and operators of clearing and settlement systems designated under the Payment Clearing and Settlement Act and overseen by the Bank of Canada,” Champagne said in a statement.
The minister added that the increased access will support financial sector innovation, boosting competition. The enforcement of the amendments was delayed to ensure that the RPAA regime would be in force before payment service providers qualified as potential Payments Canada members. Key elements of the RPAA regime took effect on September 8.
Moreover, the Canadian Payments Act changes affirm that Payments Canada members may not join its stakeholder advisory council. Eligible payment service providers who do not join Payments Canada can still join the council.
The Canadian finance department sought feedback from consumer groups, banks, credit unions, merchant associations, and payment service providers in drafting the amendments.
Payments Canada owns and runs the core payment clearing and settlement systems in Canada. Banks must become members, while centrals, cooperative credit associations, securities dealers, and trust companies may join voluntarily.
Members must fulfill relevant operational, technical, security, and other Payments Canada requirements listed in its standards, rules, and by-laws.
In August, Champagne revealed draft legislative proposals implementing previously announced tax measures in the 2024 Fall Economic Statement. Draft proposals amend the Goods and Services Tax/Harmonized Sales Tax rules in the Excise Tax Act.