The Canadian Government has released its budget for the year 2025. The budget primarily centers on several major themes, such as: shifting from reliance to resilience, adequately protecting Canada’s sovereignty as well as security, and building a stronger Canadian economy. The budget confirms the importance of payments in enabling these core objectives via:
- Safer payments: Since September 2025, the Bank of Canada is supervising payment service providers under the Retail Payments Activities Act (RPAA).
- More choice for Canadians: As of September 25, 2025, eligibility for Payments Canada membership expanded, allowing eligible new firms to apply for direct access to core payment systems.
- Faster payments: Payments Canada’s forthcoming Real-Time Rail (RTR) will enable instant, 24/7/365 money transfers.
- Consumer-driven banking: Budget 2025 advances open banking, including payment initiation capability by mid-2027 to enable direct bank payments through third-party apps.
- Stablecoins: Budget 2025 introduces a federal framework to regulate fiat-backed stablecoins to improve safety, trust and adoption in digital payments.
- Transparent international remittances: The government will require banks to clearly disclose pricing and costs for cross-border transfers so consumers can compare fees.
- Fixing misdirected payments: The government also plans to require banks to investigate and attempt to resolve payments accidentally sent to the wrong recipient.
As the operator of Canada’s vital payment infrastructure, Payments Canada said it approves of the inclusion of these payment industry objectives.
They acknowledge the Government of Canada’s support for the delivery of the RTR, which will go live after proper testing that addresses Canada’s expectations for a proper payment system.
This so-called transformational, made-in-Canada payment system will aim to provide considerable benefits to users, businesses and Canada’s economic wellbeing by enabling tech advancements, enhancing overall payment efficiency and increasing options available.
Additionally, the RTR supports the national priority to address fraud and financial crime.
The Government of Canada’s aim to support consumer-focused banking (open banking), along with Payments Canada’s expanded membership eligibility and the upcoming RTR, should aim to set the stage for another era of payment solutions that effectively bring together data, speed and safety to help Canadians and their businesses thrive.
Payments Canada encourages the development of a legislative and regulatory framework for stablecoins. This should ensure proper supervision to safeguard financial stability, ensure consumer protection as well as uphold the nation’s monetary sovereignty.
Payments Canada is prepared to keep supporting the Government of Canada in the implementation of these initiatives, encouraging competition with adequate safety and security as a key priority.
