Based on the consensus received on the April 2015 consultation paper Balancing Oversight and Innovation in the Ways We Pay, the Department of Finance Canada released a further paper, A New Retail Payments Oversight Framework in October 2017. The paper outlines various components of a new functional oversight framework for retail payments. The framework, when enforced, would apply to every retail PSP and would cover a wide variety of day-to-day transactions that are conducted through various payment methods, including credit cards, online payments, pay deposits, debit cards, pre-authorized payments and peer-to-peer (P2P) money transfers.
Traditional banks must evaluate their place within the payments ecosystem and be open to partnering with FinTechs and third-party developers to drive value collaboratively.
Structural changes are spurring payments industry participants to evaluate the future of the business as well as their role in the months and years ahead.
The Payment Services Directive 2 or PSD2 has been in full force for more than six months, and its impact is being felt not just in the European Union, but across the globe – with several markets, such as Singapore, Australia, and Nigeria, as well as Hong Kong announcing open banking initiatives inspired by the PSD2