LemFi gains Bank of Canada oversight under new RPAA
LemFi has registered as a Payment Service Provider with the Bank of Canada under the country's new Retail Payment Activities Act, bringing the remittance and financial services firm under federal supervision for payment providers.
The Retail Payment Activities Act (RPAA) sets requirements for payment providers outside Canada's traditional banking system. It establishes standards for operational resilience, safeguarding of funds, and risk management, aiming to make oversight across the retail payments sector more consistent.
LemFi already serves customers in Canada. The registration places it within the Bank of Canada's emerging supervision model for non-bank payment firms operating in the market.
Regulatory shift
The RPAA is part of a broader shift in how Canada regulates retail payments. Many payment services have historically operated under a patchwork of rules and oversight that differed from bank regulation. The new regime introduces registration and supervisory expectations for entities involved in payment functions such as initiating electronic funds transfers and providing payment accounts.
LemFi described the registration as a milestone for compliance and trust in cross-border money movement, and as particularly relevant for users who rely on remittances and international transfers in daily financial activity.
"It means our customers can move money across borders knowing their funds are handled securely within a robust supervisory framework, while still benefiting from the speed, affordability and simplicity that define the LemFi experience," said Rian Cochran, Co-founder and CFO, LemFi.
Remittance corridor
Canada is a significant outbound remittance market, driven by immigration and cross-border family and business ties. The Migration Policy Institute estimates outbound remittances from Canada at about USD $8.6 billion in 2023. India, China, and the Philippines are among the largest recipient countries.
LemFi operates in corridors linked to those destinations, as well as routes into Africa, Asia, Europe, and Latin America. It supports transfers to more than 30 countries and has more than 2 million customers globally.
Rising outbound remittance demand has attracted a wide range of competitors, from specialist money transfer firms to banks and card networks offering international transfer features. As Canada formalises payment regulation, governance, and reporting are becoming more important for firms serving the market.
Broader product set
LemFi has expanded beyond remittances over the past year. It launched a credit product, Send Now Pay Later, in the UK, introduced Instant Access Savings Accounts starting in the UK, and rolled out multicurrency accounts aimed at users who transact in more than one currency.
The firm acquired UK fintech Pillar as part of its push into credit, describing the deal as a way to strengthen its credit infrastructure. It is positioning itself as a multi-product platform rather than a single-purpose remittance provider.
LemFi also pointed to a growing regulatory footprint outside Canada, citing licences and approvals in the UK, Ireland, and Australia, along with registrations or permissions across multiple US states. While requirements vary by jurisdiction and product, the overall pattern reflects a strategy of entering markets through local regulatory pathways.
Scaling plans
LemFi said it raised a GBP £53 million Series B round and reported 65% year-on-year revenue growth. It describes itself as an AI-enabled financial platform focused on people who live and work across borders.
In Canada, the most immediate impact of RPAA registration is likely to be in governance, internal controls, and ongoing supervisory engagement. For customers, it is mainly a behind-the-scenes change affecting how funds are handled and what standards apply to safeguarding and resilience, rather than day-to-day features.
LemFi plans to continue expanding its product range and geographic reach, with further roll-outs expected across payments, credit, and savings.