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The new framework would help “level the playing field” by bringing newer players under a regulatory umbrella, according to Payments Canada, the Ottawa-based organization that cleared and settled more than $53 trillion in payments made last year via cheque, debit card, direct deposit and others.

The group, which is regulated by the Bank of Canada and subject to oversight from the federal government, is also in the midst of a multi-year overhaul of the clearing and settlement systems it owns and operates.

One of the objectives of that overhaul is allowing “broader, risk-based access to Canada’s retail payments ecosystem,” a release noted, a goal that could be aided by the proposed framework.

“The proposed oversight framework would apply to payment service providers, some of whom may in the future choose to leverage Payments Canada’s modernization effort to deliver their services,” the finance spokesperson said.

At the moment, Payments Canada says there are around 110 financial institutions participating in one or more of its systems — all of them traditional firms, such as banks and credit unions.

Ottawa has already given some consideration towards creating an “associate membership” class that would allow payment providers regulated under the proposed framework to participate in Payments Canada’s systems.

The new framework could also offer legitimacy for fintech companies, which may currently be forced to partner up with a financial institution that is already connected to Payments Canada’s systems.

“This is actually one of those where I think it’s a win for everybody,” said Gerry Gaetz, president and chief executive officer of Payments Canada, in an interview with the Financial Post.“It’s a win for consumers. It’s a win for the new entrants, because they can say, ‘look … now I’m regulated.’ And it’s a win for existing participants, because they can now feel that everybody is playing by the same rules.”

• Email: gzochodne@nationalpost.com | Twitter: GeoffZochodne