In the fast-moving world of fintech, regulated financial services aren’t just commodities — they’re strategic digital assets. Among these, Canadian Money Services Businesses (MSBs) and Payment Service Providers (PSPs) stand out as uniquely scalable, globally relevant, and increasingly sought after. Whether you’re a founder planning global expansion, an investor hunting for regulated infrastructure, or a broker looking to unlock deal-flow in a niche niche with strong compliance barriers, the Canadian MSB/PSP marketplace presents a compelling opportunity.
Understanding the Basics: What Are MSBs and PSPs in Canada?
Before we talk about buying and selling, we need to decode the jargon — because knowing what something actually is is half the battle.
Money Services Businesses (MSBs) in Canada are financial entities that engage in services like:
Foreign exchange dealing
Remittance or transmitting funds
Issuing or redeeming money orders
Dealing in virtual currency
Other money movement activities
These businesses must register with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA).
But here’s the twist: MSB registration is fundamentally an anti-money-laundering compliance regime, not a “license” in the traditional banking sense. It doesn’t give banks or clients the right to treat you like a bank, but it does make your operations legal and financeable.
Payment Service Providers (PSPs) are a related but separate category. PSPs perform retail payment activities — things like holding funds, initiating payments, processing digital transfers, and maintaining end-user accounts. With Canada’s Retail Payment Activities Act (RPAA), payment service providers must register with the Bank of Canada and meet specific operational requirements.
In other words:
MSBs cover money movement and exchange under AML law
PSPs cover payment processing and retail payment functions under the RPAA
Not all MSBs are PSPs, and not all PSPs are MSBs, but many emerging fintech ventures will fall into both categories — especially those offering digital wallets, apps that hold client funds, or payment gateways.
Why Canadian MSBs and PSPs Are Valuable Assets
Now that the definitions are out of the way — let’s talk why these regulated businesses are increasingly valuable in the fintech ecosystem.
1. Regulatory Compliance Is Easier Than Starting From Scratch
Fintech regulation is notoriously difficult — especially when it comes to payments and money movement. In Canada, compliance means:
Registration with FINTRAC
AML/KYC policies and monitoring
Ongoing reporting
Possibly PSP registration with the Bank of Canada (depending on services)
For a newcomer, building compliant infrastructure from zero — legal, tech, banking relationships — takes months and tens to hundreds of thousands of dollars. Buying an already registered entity dramatically accelerates that process.
2. Bank and Infrastructure Access
Licensed entities are far more likely to get corporate bank accounts, payment processor connections, routing numbers, and clearing relationships — the plumbing that makes financial services actually work. A clean entity with registration establishes credibility with institutions that otherwise avoid working with unregistered fintech Learn more about canadian MSB registration on this website canadian -msb .com
3. Global Reach From a Stable Regulatory Base
Canada is seen as a stable, predictable jurisdiction. That’s incredibly valuable for cross-border fintech businesses that want to offer:
Remittance for international workers
Multi-currency wallets
Virtual asset on/off-ramps
Payment processing services for global merchants
Buyers aren’t just buying a company — they’re buying legal trust and a regulated doorway into a market.
4. Turnkey Infrastructure Speeds Time to Market
Ready-made MSBs or PSP companies often come with:
Clean compliance documentation
Corporate structure
Bank letters and account history
AML/KYC frameworks
Reporting infrastructure
That means buyers can launch products fast — sometimes in a matter of weeks.
The Market Today: How Deals Happen
So what does buying and selling look like in real life?
Let’s break it down.
Sellers
If you’ve built an MSB or PSP and want to exit, your value is in:
Clean regulatory status
No legal or compliance defects
Good banking and processor connections
A documented compliance program and SOPs
Any tech or product assets associated with payment flows
Listing these assets in a marketplace like 7BaaS allows you to connect with buyers looking for compliant acquisitions.
Buyers
Buyers range from:
Fintech startups wanting an instant regulated entry
Traditional businesses adding payment or remittance capabilities
Investors turning regulatory licenses into scalable products
Crypto platforms needing compliance infrastructure
Instead of spending months building compliance (and risking rejection), buyers get:
Verified entities
Shorter onboarding cycles
Clear paths to banking
Documented AML/KYC frameworks
And for some deals, closing can be surprisingly quick — deals have been completed in as little as one week on transfer with the right preparation.
Brokers
Not ready to buy or sell? You can still participate by referring qualified buyers or sellers. Brokers earn commissions without handling compliance headaches — 7BaaS manages regulatory alignment and the transfer process.
What Makes a Good MSB/PSP Acquisition Target?
Not all licensed entities are equally valuable. Strong targets generally have:
✔ Clean Compliance History
No unresolved enforcement actions or flagged regulatory issues.
Verified reporting, documented policies, and recent audit readiness.
✔ Operational Documentation
A complete data room: corporate docs, AML frameworks, training logs, banking letters, SOPs, risk manuals.
✔ Banking & Processor Connectivity
Bank accounts, payment processor agreements, clear settlement histories — these are the pipelines that make things work.
✔ Transferability
Some jurisdictions or banking partners have limitations. Good targets ensure smooth ownership transferability.
✔ Scalable Scope
Companies offering virtual assets, remittance corridors, or payment processing services typically command higher demand.
Practical Steps to Buy or Sell a Canadian MSB/PSP
Here’s a real-world playbook:
1. Initial Discovery & NDA
Both parties sign a non-disclosure agreement. Confidentiality protects valuation and deal leverage.
2. Valuation & Planning
Licensed entities need proper valuation — compliance completeness, banking relationships, and risk exposure all factor into price.
3. Dossier Creation
Create a data room with all compliance, legal, corporate, and operational documents. This is what due diligence runs on.
4. Offers & Due Diligence
Potential buyers review, ask questions, and issue offers. Sellers respond with documentation; buyers may ask for clarifications.
5. Regulatory & Banking Updates
Some transfers require notifications to FINTRAC or the Bank of Canada (for PSPs), and banking partners often need to re-underwrite the new owner.
6. Closing & Handover
Final agreements are signed, payments are settled, and documented handover occurs.
Risks to Watch
No market is perfect — and regulated fintech has its own pitfalls.
⚠ Regulatory Changes
Canada’s PSP regime is evolving — the Bank of Canada registration requirements for retail payment activities kicked in through the RPAA, and transition deadlines continue to roll. Learn more about this on the website bankofcanada.ca
Unknown Compliance Gaps
Entities without strong documentation or unresolved reporting gaps can pose significant risk.
Banking Fragility
Banks may change risk appetite — what worked last year may not fly post-transaction.
Experienced advisors and marketplaces with compliance expertise help mitigate these risks.
Conclusion: Fintech with Teeth
Buying and selling registered Canadian MSBs and PSPs is more than just flipping companies — it’s trading regulated infrastructure. Canada’s regulatory clarity, evolving payment regime, and strong AML framework make these assets valuable to businesses that want speed, legitimacy, and real market access.
Whether you’re expanding, exiting, or just tapping into a regulated acquisition playbook, understanding the nuances of MSBs and PSPs — and using a trusted marketplace — makes all the difference.
Ready to explore opportunities or list your licensed entity? Visit the service page Buy & Sell Registered Canadian MSBs & PSPs at 7BaaS to get started.
