Retail payments

• December 23, 2025

  Letter to industry - Update on Trust Tax Issue

  This letter is in reference to the letter published by the Bank of Canada on September 8, 2025, indicating that there may be unintended consequences under the Income Tax Act for Payment Service Providers (PSPs) seeking to comply with the Retail Payment Activities Act (RPAA). Specifically, the September letter noted that there could be tax consequences or administrative burden under the Income Tax Act for PSPs seeking to safeguard end-user funds using the “in trust in a trust account” method while retaining interest income on the end-user funds they hold.

  Content Type(s): Regulatory news Subject(s): Retail payments
• December 19, 2025

  Case scenarios about marketplaces

  The following fictional case scenarios illustrate the Bank’s approach to online marketplaces, and show examples of payment functions that are, and are not, incidental to a marketplace . These include the provision and maintenance of an account; the holding of funds on behalf of an end user; the initiation of an electronic funds transfer (EFT); authorization of an EFT and the transmission, facilitation or reception of an instruction in relation to an EFT; and the provision of clearing or settlement services.

  Content Type(s): Retail payments materials, Case scenarios Subject(s): Retail payments, Holding funds, Registration
• December 19, 2025

  Supervisory policy for online marketplaces

  This supervisory policy sets out the Bank’s approach to online marketplaces and explains when their activities fall within the scope of the Retail Payment Activities Act.

  Content Type(s): Retail payments materials, Supervisory policies Subject(s): Retail payments, Holding funds, Registration