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Consumer protection needed for online payments: banker group

TORONTO –


More client protection is needed as new entrants within the fast-growing funds area get forward of regulation, the pinnacle of the Canadian Bankers Association stated.


Speaking at a Canadian Club Toronto occasion Thursday, affiliation president Anthony Ostler stated there at the moment are greater than 2,000 non-bank cost companies suppliers with extra anticipated amid initiatives just like the push for open banking.


The funds area has grown with quite a few know-how firms equivalent to Shopify, Square and PayPal providing choices, whereas extra not too long ago there’s been large development in companies like purchase now, pay later.


Ostler stated that whereas competitors is sweet, the funds market is operating in entrance of the regulatory setting and customers aren’t being adequately protected.


“Let’s be clear, we do not need the following FTX or Celsius coming from Canada’s funds ecosystem.”


He stated the federal authorities ought to add client protections to the Retail Payments Oversight Framework as they think about subsequent steps.


Ostler additionally stated the federal government ought to do extra to spice up productiveness, and raised issues about propsed federal taxes that particularly targets the banking sector.


The taxes embody a one-time 15 per cent windfall tax on giant banks and life insurers income made in the course of the pandemic, plus a everlasting elevate of the tax charge for the 2 from 15 per cent to 16.5 per cent.


The taxes wouldn’t solely elevate the price of capital for the banking sector, however for firms throughout the nation since they add one other variable for potential buyers within the nation. A know-how firm may select to look elsewhere, he stated for example, the place they would not be “randomly attacked.”


“So we truly enhance the price of capital for all Canadian companies by creating uncertainty over who may very well be subsequent.”


In September, the parliamentary funds officer estimated the 2 taxes may generate $5.3 billion over the following 5 years.


This report by The Canadian Press was first revealed Nov. 24, 2022.

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