What Regulations Are Expected to Impact Fintechs in 2026 in Canada?

With Budget 2025 affirming the Government of Canada’s intention to implement Open Banking, it’s been a banner year for fintechs! Canadian fintech companies can finally breathe a sigh of relief as 2025 comes to a close. Although it was a landmark year, it certainly was a busy one, and we hope you’ve enjoyed some restful time off. With momentum for Open Banking taking hold and a shift in oversight for payment service providers, 2026 could be another busy year. What’s to come for Canadian fintechs? Here’s a quick summary:

Investment Trends: 2025 Recap

Although the first half of 2025 saw investment drop, deal value was up about 2.3x at the end of Q2. Larger financings became more common as investors exercised caution against broader economic headwinds, taking their time before putting money down. Still, several notable Canadian fintechs saw large rounds in 2025, and several also led Deloitte’s Technology Fast 50, including Float, Relay, nesto, Apaylo, KOHO, and ZayZoon.

All of this to say that investment in fintech has not stopped, but shifted towards more later stage strategic deals. In many cases, these deals come as a response to regulatory change rather than speculation, making regulators that much more important to the outlook for 2026. 

Building Regulatory Momentum: 2026 and Onwards

One of the most significant developments of 2025, Budget 2025 affirmed the federal government’s commitment to open banking. The new Open Banking framework gave consumers more flexibility over their financial choices, while giving fintechs greater access to banking infrastructure. 

Prior to the changes in October 2025, fintechs and credit unions still needed to partner with a Payments Canada member to clear and settle payments. Payments Canada owned the rails (the only systems we have to settle retail payments in Canada) and only Payments Canada members could use them. Fintechs in Canada needed a partnership with a member organization (like a bank) in order to clear and settle payments. 

For example, if you opened a chequing account with a fintech like Wealthsimple, KOHO, or Neo, you would have a “bank like” experience, but behind the scenes the member bank would be the one to actually clear your debit transactions, settle your payroll deposits, and touch the payment rails. As of October 2025, some fintechs and credit unions are now eligible to clear and settle their own payments. 

While the onboarding for these new members into Payments Canada will likely be slow and cautious, it marks a structural shift in how regulators treat payments. For mature fintechs with the scale, capital, and compliance capacity, this opens the door to greater operational independence. For smaller fintechs that do not have the budget or operational requirements for direct participation, this might spur new niche financial products or a greater focus on user experience. On a regulatory level, 2026 will likely be about putting 2025’s regulatory changes into practice. 

Smaller fintechs who choose not to enroll with Payments Canada might partner with larger platforms or become the target of acquisitions, so the fintech M&A landscape could be interesting to watch. However, many customers choose fintechs because they don’t want to choose a major bank, seek open banking for lower switching costs, or need a specific use case. This means there will be opportunities for nimble,  differentiated fintechs to punch above their weight in terms of market share. 

2026 will bring plenty of excitement as Canada’s fintechs step into a brand new era – and we can’t wait to watch it happen! With regulatory efforts ready to be put into practice and Canada’s fintechs reaching a new stage, the fintech space will be worth watching.