Paycot Registers as a Bank of Canada PSP

1. Paycot Is Now Registered with the Bank of Canada

Paycot is now a registered payment service provider (PSP) with the Bank of Canada, under the Retail Payment Activities Act (RPAA). The registration places Paycot's payment operations under formal Canadian oversight and confirms its standing to move money electronically for business clients across borders.

What it means in one line. Paycot can initiate electronic funds transfers and handle the payment instructions behind them, as a supervised, AML-disciplined provider rather than an unregulated one.

2. What the Registration Covers

Under the RPAA, the Bank of Canada supervises payment service providers for operational risk management and the safeguarding of funds. Paycot's registration covers two core payment functions:

• Initiating electronic funds transfers at a client's request.
• Handling payment instructions: authorising, transmitting, receiving, and facilitating instructions in relation to an electronic funds transfer.

The RPAA came into force on 8 September 2025, bringing payment service providers under Bank of Canada oversight for the first time. Paycot's entry now appears on the Bank's public PSP registry.

3. What This Means for Clients

For existing clients, the day-to-day does not change. The same team runs the same infrastructure, existing integrations and APIs stay in place, and current flows continue with no migration and no action required. What changes is the footing underneath: payments now run through a Bank of Canada-supervised registration. That is a stronger base to build on, and a clearer answer when your own compliance team asks who moves your money and under what oversight.

4. Why a Canadian Registration Matters

Canada used to supervise money-movement businesses mainly through anti-money-laundering registration. The RPAA changed that, adding operational-resilience and fund-safeguarding supervision by the central bank. For a business moving money across borders, that means a recognised, AML-disciplined base that is not tied to a single regional market, plus a public registry entry a counterparty can verify.

5. What It Unlocks: Cross-Border Reach into Latin America

The registration is the foundation for where Paycot is heading next: cross-border payments into high-growth markets, with Latin America first in line. The opportunity is real and measurable:

• The market is tripling: Latin America's digital-payment revenue is projected to reach roughly $0.3 trillion by 2027.
• Real-time is the default: digital and real-time methods make up about 60% of consumer spending in the region, and mobile wallets are used by 62% of Latin Americans.
• One rail leads the world: Brazil's PIX processed 63.4 billion transactions worth $4.6 trillion in 2024, up 53% year on year, and now handles around 40% of Brazilian e-commerce.

6. How the Money Lands: Local Rails

Reaching customers in the region means meeting local rails where they are: Brazil's instant PIX, Mexico's SPEI and CoDi, wallets such as Mercado Pago, and cash networks like OXXO, with Colombia's Bre-B and Argentina's Transferencias 3.0 following the PIX model. There is no single "Latin American payment"; coverage is the sum of many local connections, and the value of a provider is how many it reaches cleanly.

7. The Direction

On top of the registered base sits Paycot's technology layer – white-label gateways, embedded widgets, and APIs – designed to connect businesses to local payout reach as we extend it across the region. If you are moving funds to suppliers, contractors, or customers across Latin America, send your corridors and monthly volumes to [email protected], and we will map the route that fits your flows.

8. About Paycot

Paycot is a payments infrastructure provider for businesses. Its fiat operations run under a Bank of Canada payment service provider registration under the Retail Payment Activities Act, covering the initiation of electronic funds transfers and the handling of payment instructions. Paycot also provides payment technology – white-label gateways, embedded widgets, and APIs. For payment questions, contact [email protected].

This article is general commentary as of June 2026 and reflects Paycot's position at the time of writing. It is not legal or financial advice. Confirm your own regulatory position with qualified counsel before acting.

Sources

• Retail payments supervision, Bank of Canada: https://www.bankofcanada.ca/regulatory-oversight/retail-payments/
• RPAA PSP registration update – what happens on 8 September 2025, Stikeman Elliott: https://stikeman.com/en-ca/kh/canadian-ma-law/bank-of-canada-rpaa-payment-service-providers-registration-update-what-happens-september-8-2025
• Latin America Digital Payments Market Report 2025, FinTech Futures: https://www.fintechfutures.com/press-releases/latin-america-digital-payments-market-report-2025-latin-america-s-digital-payment-revenue-to-triple-by-2027-reaching-a-projected-0-3-trillion-brazil-s-pix-dominates-latam-digital-payments
• PIX surges 53% as digital payments overtake cards in Brazil, PYMNTS: https://www.pymnts.com/news/international/latin-america/2025/pix-surges-53percent-digital-payments-overtake-cards-brazil/
• Cross-border payments in Latin America: SPEI, PIX and more, Bitso Business: https://business.bitso.com/en/blog/cross-border-payments-latin-america-spei-pix-pse-cbu-cvu