Cross-border payments startup Grey is deepening its global footprint after securing registration as a payment service provider in Canada, a move that positions the company to operate more directly within one of the world’s tightly regulated financial systems.
The Y Combinator-backed fintech is now registered under Canada’s Retail Payment Activities Act, a regulatory framework that oversees both local and foreign payment companies. The development marks a significant step in Grey’s strategy to build a compliant, globally integrated payments network.
This milestone builds on Grey’s earlier integration with Interac, which already allows users to send Canadian dollars directly into local bank accounts. With the new regulatory approval, the company can now offer its services in Canada with full alignment to local compliance standards rather than relying solely on partnerships or intermediaries.
The timing reflects a broader shift in global trade dynamics. Trade activity between Canada and Africa has grown steadily in recent years, with Canadian exports to the continent increasing and imports from Africa rising even more sharply.
Despite this, the payments infrastructure supporting these transactions has remained complex, often involving multiple intermediary banks, which can slow down transfers and increase foreign exchange costs.
Grey is positioning itself as a solution to that inefficiency. Founded in 2020 by Joseph Femi Aghedo and Idorenyin Obong, the platform offers multi-currency accounts in dollars, pounds, and euros, allowing users to send money to more than 170 destinations worldwide.
According to Obong, the Canadian registration is not just a regulatory checkbox but a strategic move to improve trust and performance in the company’s services.
“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,” he said.
The RPAA, which came into force in 2024 and is overseen by the Bank of Canada, introduces stricter standards for payment providers. These include requirements around safeguarding customer funds, managing operational risks, and reporting system incidents.
By registering under this framework, Grey will now be required to submit annual compliance reports and conduct internal reviews every three years to demonstrate adherence to these standards.
In addition to its Canadian approval, the company is also registered as a Money Services Business with FINTRAC and with the Financial Crimes Enforcement Network in the United States, further strengthening its regulatory standing across key markets.
For users, the implication is straightforward. More direct access to Canadian payment rails, potentially faster transaction speeds, and improved transparency around fees and processing.
For Grey, the move signals a transition from a fast-growing fintech to a more mature, compliance-driven financial platform, positioning it to compete more effectively in the global payments space where regulation is often the biggest barrier to scale.