A customer buys groceries with a credit card in Salem, N.H., July 17, 2018. The head of the Canadian Bankers Association says more consumer protection is needed as new entrants in the fast-growing payments space get ahead of regulation. THE CANADIAN PRESS/AP-Elise Amendola
TORONTO – The head of the Canadian Bankers Association says more consumer protection is needed as new entrants in the fast-growing payments space get ahead of regulation.
Speaking at a Canadian Club Toronto event, association president Anthony Ostler says there are now more than 2,000 non-bank payment services providers with more expected amid initiatives like the push for open banking.
The payments space has grown with numerous technology companies such as Shopify, Square and PayPal offering options, while more recently there’s been tremendous growth in services like buy now, pay later.
Ostler says that while competition is good, the payments marketplace is running in front of the regulatory environment and consumers aren’t being adequately protected.
He says the federal government should add consumer protections to the Retail Payments Oversight Framework as they consider next steps.
Ostler also says the government should do more to boost productivity, and raised concerns about the federal tax that specifically targets the banking sector.
This report by The Canadian Press was first published Nov. 24, 2022.
