nanopay proposes Payments Bank

Summary#

nanopay Holdings Inc. says it will apply under the Bank Act (Canada) for letters patent to create a bank that would trade as Payments Bank™ / Banque Paiements. The proposed bank would be based in Toronto, Ontario and focus on payment processing and settlement rather than lending. Objections can be sent to the Office of the Superintendent of Financial Institutions by September 15, 2020.

What it does#

• nanopay Holdings Inc. intends to apply to the Minister of Finance for letters patent to incorporate a bank (notice dated July 25, 2020).
• The proposed bank would operate in Canada under the names Payments Bank™ (English) and Banque Paiements (French). Its head office would be in Toronto, Ontario.
• About 64% of nanopay’s shares are collectively owned by its board of directors: Laurence Cooke, Andrew Prozes, David Roffey, Gary Cohn, Matthew Grayson, and Robert Crockford.
• The bank would offer payment processing, clearing and settlement services for customers such as fintechs, payment platforms, large billers, payroll, tuition and rent processors, and insurance companies.
• Services would include domestic and cross-border payments delivered via application programming interfaces (APIs) and white-label web interfaces.
• The proposed bank would not do lending or provide investment-advisory services.
• Anyone who objects can write to the Office of the Superintendent of Financial Institutions (address given in the notice) by September 15, 2020.

Who's affected#

• Fintech companies, payment-technology firms, and large billers named as target customers in the notice are the most likely to notice this directly.
• Companies that run payroll, process tuition or rent payments, and insurance firms are specifically mentioned as potential clients.
• Existing payment processors and banks could see a new competitor, although the notice does not spell out market impacts.
• The general public may be affected indirectly if the new bank changes how payments, cross-border transfers, or white-label payment services are offered.
• It is unclear from the notice how soon the bank would start operating or how many customers it would serve.

Why it matters#

• A new bank focused on payments could make it easier for businesses and fintechs to access modern payment tools (APIs and white-label services).
• Because the bank says it will not lend, its main impact would be on payment processing and settlement rather than consumer credit or investment services.
• The application is not guaranteed; the decision depends on the normal review process and any objections received by September 15, 2020.