Grey, a Y Combinator-backed cross-border payments platform, has been registered as a payment service provider (PSP) in Canada under the country’s regulatory framework for payments companies, the Retail Payment Activities Act (RPAA).
The move builds on Grey’s earlier integration with Interac, a Canadian interbank network, which allows Grey users to send Canadian Dollars directly to any Canadian bank account.
Between 2019 and 2024, merchandise exports from Canada to Africa grew by 13%, while imports from Africa increased by 109%. Still, payments across the trade corridor rely on multiple intermediary banks, which could lead to slow settlement times and high foreign exchange costs.
Founded in 2020 by Joseph Femi Aghedo and Idorenyin Obong, Grey plans to sit at the centre of these global money flows by offering multi-currency accounts in dollars, pounds, and euros, enabling transfers to more than 170 destinations.
“Registering under the RPAA framework is an important step in aligning our operations with Canada’s regulatory expectations,” said Obong. “Our goal is to provide a reliable and transparent way for users to send money to Canada, with delivery times that can be near real-time depending on the payment method used.”
The RPAA, which came into effect in 2024 and is overseen by the Bank of Canada, sets standards for local and foreign payment service providers, including their registration requirements and how they manage operational risk, safeguard customer funds, and report incidents.
By registering under the framework, Grey can now offer payment services directly to users in Canada while complying with local regulatory standards.
Under the RPAA, PSPs are required to implement stronger safeguards around customer funds and system failures. Grey will now be expected to provide annual compliance reports to the Bank of Canada and undergo an internal review every three years to assess compliance.
Grey said it is also registered as a Money Services Business with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) in Canada and with the Financial Crimes Enforcement Network in the United States.
