LemFi registers as payment service provider with Bank of Canada

By Vriti Gothi

LemFi has registered as a payment service provider by the Bank of Canada under the country’s new regulatory framework established through the Retail Payment Activities Act (RPAA), marking a step in the company’s efforts to expand its presence in Canada’s outbound remittance market.

The registration places the London-based FinTech within Canada’s federal supervisory framework for payment providers, which introduces stricter requirements around operational resilience, risk management and the safeguarding of customer funds. The regulatory regime is intended to strengthen oversight of non-bank payment providers operating in the country’s payments ecosystem.

LemFi already serves customers in Canada, but the new registration formally aligns its operations with the Bank of Canada’s regulatory standards through its local entity, Pomelo Technology Canada Ltd. Compliance with the RPAA framework is expected to increase accountability among payment providers while improving consumer protection across the sector.

The move comes as Canada emerges as one of the fastest-growing outbound remittance markets globally. According to estimates cited by the Migration Policy Institute, remittance outflows from the country reached around $8.6bn in 2023, rising from $7.5bn in 2020. Major recipient corridors include India, China and the Philippines, reflecting the country’s large immigrant population and cross-border financial needs.

For LemFi, regulatory registration is part of a broader strategy to expand beyond traditional remittance services and develop a wider financial platform for migrant communities and global workers. While the company initially focused on international transfers, it has been expanding its offering to include credit and savings products in certain markets.

The firm has recently introduced features such as Send Now Pay Later in the UK and Instant Access Savings Accounts, alongside strengthening its credit infrastructure following the acquisition of FinTech firm Pillar. The company says these developments form part of its ambition to build a cross-border financial ecosystem that supports payments, savings and credit within a single platform.

Rian Cochran, co-founder and CFO of LemFi, said, “Canada is one of the world’s most important remittance markets, driven by a diverse and growing immigrant population. Being registered as a Payment Service Provider under the RPAA reflects our commitment to building a platform that is not only innovative but deeply aligned with the highest regulatory and operational standards. For our customers, this is about trust. It means they 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.”

The registration also expands LemFi’s regulatory footprint globally, adding Canada to a list of jurisdictions where the company holds approvals or licences, including the UK, Ireland, Australia and several US states. As FinTech firms increasingly face stricter regulatory oversight in cross-border payments, such authorisations are becoming an important factor in building credibility and scaling internationally.