Grey, a cross-border payments startup backed by Y Combinator, has taken a step deeper into North America, registering as a payment service provider in Canada under the country’s new payments law.
The approval, granted under the Retail Payment Activities Act (RPAA), allows the fintech to operate more directly within Canada’s financial system, rather than relying solely on partners.
It builds on Grey’s earlier integration with Interac, which already lets users send Canadian dollars straight to local bank accounts. With regulatory backing now in place, the company is positioning itself to play a bigger role in cross-border transactions between Canada and other markets, including Africa.
That corridor is growing, but still inefficient. Between 2019 and 2024, Canada’s merchandise exports to Africa rose by 13%, while imports from the continent jumped 109%. Yet payments between both regions often pass through multiple intermediary banks, driving up costs and slowing settlement times.
Founded in 2020 by Joseph Femi Aghedo and Idorenyin Obong, Grey is betting on a simpler model. Its platform offers multi-currency accounts in dollars, pounds, and euros, and supports transfers to more than 170 countries.
For the company, the Canadian registration is as much about compliance as it is about expansion.
“Registering under the RPAA framework is an important step in aligning our operations with Canada’s regulatory expectations,” said Obong. He added that the goal is to make sending money to Canada faster and more transparent, with near real-time delivery depending on the payment method.
The RPAA, which came into force in 2024 and is overseen by the Bank of Canada, sets out how payment companies both local and foreign must operate. It includes rules on safeguarding customer funds, managing operational risks, and reporting incidents.
By registering, Grey can now provide services directly to Canadian users while adhering to those standards. The framework also comes with ongoing obligations: the company must file annual compliance reports and conduct internal reviews every three years.
Grey said it is also registered as a Money Services Business with the Financial Transactions and Reports Analysis Centre of Canada, as well as with the Financial Crimes Enforcement Network in the United States part of a broader effort to operate across multiple regulatory environments as it scales globally.