Payments Canada membership and council changes

Summary#

The Board of Directors of Canadian Payments Association (doing business as Payments Canada) adopted the By-law Amending the Canadian Payments Association By-law No. 1 — General. The changes update who can be a member and what evidence new applicants must supply, and they change who can sit on two advisory councils. The by‑law was registered on September 26, 2025 and published in the Canada Gazette on October 8, 2025.

What it does#

• Updates the definitions of “payment service provider” and “stakeholder” used by Payments Canada.
• Requires a payment service provider to be registered under the Retail Payment Activities Act before it can become a member of Payments Canada.
• Adds specific documents applicants must provide when seeking membership:
  • payment service providers must show evidence of registration under the Retail Payment Activities Act;
  • clearing houses must show the clearing and settlement system is designated under the Payment Clearing and Settlement Act;
  • certain credit union locals must confirm they accept deposits transferable by order.
• Changes composition and eligibility rules for the Stakeholder Advisory Council (SAC):
  • SAC size limited to no more than 20 people, with at least one but no more than two being elected directors;
  • requires at least 12 members who represent users, with minimum representation for consumers, the retail sector, the federal government, a provincial government, and the treasury and cash management sector;
  • requires at least one member who represents payment service providers.
• Allows individuals employed by an entitled member that is not a Payments Canada member to be eligible for appointment to the SAC (so non-member PSPs can still be represented).
• Updates the Member Advisory Council rules to also cap membership at no more than 20 people and require its non-director members to be directors, officers, or employees of a Payments Canada member.
• Sets the by‑law to come into force on the latest of:
  • the day section 222 of the Fall Economic Statement Implementation Act, 2023 comes into force,
  • the day section 25 of the Retail Payment Activities Act comes into force, or
  • the day the by‑law is registered.

Who's affected#

• Payment service providers that would apply to join Payments Canada, especially those that will be supervised or registered under the Retail Payment Activities Act.
• Operators of clearing and settlement systems that seek membership (those designated under the Payment Clearing and Settlement Act).
• Credit union locals that are part of a credit union central and want membership.
• Current and prospective members of the Stakeholder Advisory Council and the Member Advisory Council, including consumer and government representatives.
• Small businesses that act as payment service providers may notice a minor extra step when applying for membership.

If any part of who is affected is unclear from the by‑law text, that is stated here.

Why it matters#

• It aligns Payments Canada’s rules with recent federal law changes so the organization can admit new kinds of payment firms and system operators.
• Applicants now need to submit evidence of their legal or regulatory status. That reduces Payments Canada’s own paperwork but adds a small extra task for applicants.
  • The government estimates an annualized administrative cost of $110 across affected businesses.
  • It expects 66 businesses to spend an additional 30 minutes to an hour once to supply the information, based on an average wage of $32.26/hour.
  • The estimated annualized administrative impact per business is $0.04.
• Letting non‑member payment service providers sit on the SAC keeps user and PSP perspectives in advisory discussions, even if those entities are not full members. That can affect how Payments Canada designs rules and services that touch banks, fintechs, businesses, and consumers.
• Overall, the changes are mainly administrative and technical rather than sweeping policy shifts, but they make it formally possible for more regulated payment entities to join Payments Canada and participate in its systems.