Canada's 2025 Budget: 7 key takeaways for payments

Canada’s 2025 federal budget introduces significant changes to its financial system. 

But that’s just what you’d expect from Prime Minister Mark Carney, the only person ever to lead two G7 central banks. 

It’s a budget that focuses on modernization, innovation, and competitiveness.  

For the payments industry, this means clearer rules, faster systems, and more open access.

So, what’s actually been announced?

1. Open Banking moves ahead

First up, open banking finally has a clear path and gets long-overdue attention. With oversight moving to the Bank of Canada, consumer-driven banking is one step closer to reality.  

Payment initiation is expected by mid-2027. And the government will legislate a consumer-driven banking framework that lets Canadians share data safely and use trusted apps to make payments. Around $25.7 million over five years is allocated for oversight and security. 

These are real milestones. But the challenge lies in execution. Governance, accreditation, and commercial incentives must move as quickly as policy if this is to deliver real value. Oversight by the Bank of Canada is a positive step, but success will depend on striking the right balance between innovation and trust. 

2. Stablecoins get rules

Next, Canada will introduce clear rules for fiat-backed stablecoins — one of only a few countries globally to do so (others include the US, UK, EU, Japan, Singapore and Hong Kong). 

So what’s happening?  

Well, the budget introduces a new federal framework to regulate the issuance of fiat-backed stablecoins, making them safer for Canadians and businesses and helping build trust in digital payments.   

The Retail Payment Activities Act will also be amended to regulate payment service providers that carry out payment functions using prescribed stablecoins.  

Stablecoins must hold full reserves, have clear redemption terms, and maintain strong risk management and data protection. 

This gives both banks and crypto firms confidence to innovate within clear guardrails. It’s a nod of confidence to the industry. 

3. Fair fees and faster access

This one’s been in the running for some time. But now, the budget is targeting everyday costs that frustrate consumers. 

How? 

 Transfer fees for investment accounts are proposed to be eliminated (these currently cost Canadians around $150 per account).

ATM and Interac fees will be reviewed for transparency (though the government does not yet state how it will tackle this).  

The process of switching primary chequing accounts between Canadian financial institutions will be simplified (though, again, the details are not yet known). 

And the government will explore ways to make cross-border remittance fees (including foreign exchange costs) more transparent. 

All of this signals that the government is helping to promote fairness for customers. Not just in fee transparency, but also in making banking more convenient. It aims to enhance customer banking experiences, making it cheaper and easier for people to select banks that best meet their needs. That should foster greater competition and fairness in the financial sector. 

It’s a welcome step forward and will help millions of Canadians.

4. The Real-Time Rail is “national payments infrastructure”

Next, the budget reconfirms the Real-Time Rail (RTR) as critical payments infrastructure. RTR will enable instant payments, 24/7, and is expected to launch in 2026. 

As with all instant payment systems, it will speed up commerce, support innovation, and boost the economy with innovative use cases – just as we’ve seen in other markets. (If you’d like to learn more about instant payments in Canada, click here.)

5. Wider access to payment systems

This one’s not new. But the budget reiterates the promotion of wider participation under the RPAA Act. The government is expanding membership eligibility in Payments Canada to allow new firms to apply for direct participation in Canada’s core payment systems, providing Canadians with more choice in providers of financial services 

More than 1,500 PSPs are expected to register under the RPAA, dramatically expanding access (according to Budget 2025). 

This change removes long-standing barriers, introduces innovation, and creates real competition in how payments move across the country. And it aligns Canada with global peers like the UK and Australia. 

 6. A stronger stand on financial crime

The nnouncement of a new National Anti-Fraud Strategy will bring together banks, telcos, and tech companies to protect Canadians from scams. 

The budget backs Bill C-12, which strengthens AML and counter-terrorist-financing rules. Large cash transactions and third-party deposits will face stricter limits, while new data-sharing partnerships will help track organized crime and money laundering.

To really make an impact, it must also target human trafficking. To find out why, click here. 

7. AI is a priority

Last but by no means least, the government is exploring options and working with the private sector to encourage the adoption of artificial intelligence (AI) in the financial sector. In ways that advance innovation and build trust in its use.  

At RedCompass Labs, we see this as part of a broader shift toward Hybrid Intelligence — where human expertise and AI work together to make financial systems smarter, safer, and more transparent. The key will be responsible adoption: using AI to enhance decision-making, strengthen financial integrity, and protect consumers while maintaining trust. 

What it means

Canada is moving with purpose.   

During his time at the Bank of England, Carney led major post-crisis reforms that made the financial system safer, simpler, and fairer — and modernised the UK’s payment infrastructure to support innovation. Those same principles now underpin his approach to building a faster, more open, and resilient system for Canada. 

For payments professionals, it’s welcome news and certainly the moment to get involved.  

If you’d like to learn more about Canadian payments and how we can help, click here.