Introducing...Payments Bank (in English) and Banque Paiements (in French)... | General financial discussion | Discussion forum

From this week's Canada Gazette...

A new Schedule I chartered bank is proposed under the name Payments Bank (in English) and Banque Paiements (in French).

It is to be owned by Nanopay Holdings Inc., of which the shares are 64% held by the following members of its board of directors, "Laurence Cooke, Andrew Prozes, David Roffey, Gary Cohn, Matthew Grayson and Robert Crockford."

"The proposed bank will engage in payment processing, clearing and settlement activities for customers, including fintechs, payment technologies, large billers, payroll, tuition, rent payments and insurance companies. The bank will offer both domestic and cross border payments services through application programming interfaces (APIs) and white label web interfaces. The bank will not engage in lending activities or provide investment advisory services.

Any person who objects to the proposed incorporation may submit an objection in writing to the Office of the Superintendent of Financial Institutions, 255 Albert Street, Ottawa, Ontario K1A 0H2, on or before September 15, 2020."

Source: http://gazette.gc.ca/rp-pr/p1/.....g.html#ml2

This is just the initial filing of the Bank Act incorporation; final approval and commencement of operations is likely at least 12-36 months out.

This looks to me like Peoples Trust Company's business model of providing services to the fintechs, so they will likely be the chief competitor to Payments Bank and we could see the likes of Stack, Aura, Revolut, etc. jockey for position and switch third-party processing and handling banks once they launch.

Cheers,
Doug