The financial technology (fintech) platform that helps immigrants and people in the diaspora communities send money internationally and manage cross-border finances seamlessly, LemFi, has officially secured a Payment Service Provider (PSP) banking licence under the Bank of Canada (BoC)'s Retail Payment Activities Act (RPAA).
This licence, secured through its Canadian entity, Pomelo Technology Canada Ltd, would allow LemFi to serve Canada’s growing outbound remittance market that's valued at around $8.6 billion in 2023. Notably, the company has been operating in Canada before now, but this new licence will bring the company under Canada’s new federal supervisory framework for the payments sector.
The licence is compulsory to stay compliant with the regulator's rules and to build the full stack of financial services that move with people across borders. The legislation introduces stricter regulatory requirements for payment providers for the purpose of improving accountability and enhancing consumer protection. Under Canada’s RPAA framework, payment providers are required to meet rigorous standards related to operational resilience, safeguarding of funds, and risk management.
LemFi is deepening its footprint in Canada because the country is among the world's fastest-growing outbound remittance markets. In fact, the country climbed to $8.6 billion in transactions in outbound remittances in 2023. That's an increase from $7.5 billion in 2020. Notably, China, India, and the Philippines—countries that support LemFi’s global infrastructure—are the largest recipient countries of the transactions.
In addition to that, LemFi is also operating in multiple U.S. states, the U.K. and Ireland, and Australia, allowing international remittances to over 30 countries in Asia, Latin America, Africa, and Europe. The company has expanded beyond remittances into credit and savings through the acquisition of UK fintech Pillar. Today, LemFi is serving over 2 million users around the globe.
