Industry Committee on Oct. 24th, 2024

[Brian Peters]

Likewise, Stripe has been very engaged in the open banking file. We were also a part of the working groups.

The initiative to drive forward consumer-driven banking, I think, will have one of the best impacts on payment costs, which is the subject of the hearing today. It will bring competition to the market and alternatives to the card networks.

The potential for “pay by bank” to become a reality, it's something we have in other jurisdictions. I think it's wonderful that Canada is moving forward in this direction.

[Tony Van Bynen, Liberal, Newmarket—Aurora, ON]

Going back to Mr. Bossin, how do you see the development of open banking in Canada? How, in your view, might it influence credit card regulations and practices? What role would Interac play in ensuring a smooth transition for consumers and merchants?

[Bryan Bossin]

The differentiation factor for Interac is that we're helping people pay from their own bank accounts. They're account-based payments. You're paying from your bank account.

In the case of consumer-driven banking, there are a number of different applications of that and different providers that would look to leverage that data. It's giving permission for your data to be shared in a secure fashion in a way that helps benefit consumers.

Interac, like I said, has been supporting the development of consumer-driven banking in Canada. However, from our perspective, our focus is on ensuring that things like our e-transfer product and our debit product are widely available, that they're reliable, that Canadians trust them and know how to use them and that they can access them to complete transactions in daily life.

[Tony Van Bynen, Liberal, Newmarket—Aurora, ON]

Mr. Peters.

[Brian Peters]

Stripe has a product that helps our businesses access account information so that they can run their alternative payment system for their customers based on open banking. We're very much involved in engineering those connections to help make sure that they're secure, ideally through an application programming interface, and that the data also has a set of protections that are consistent with the privacy expectations of consumers.

I'd be happy to follow up with you to talk about how we're doing that today and the new payment experiences it's powering.

[Tony Van Bynen, Liberal, Newmarket—Aurora, ON]

How does Interac collaborate with financial institutions and regulatory bodies like the Financial Consumer Agency of Canada, the FCAC, to ensure compliance with credit card-related regulations?

[Bryan Bossin]

To be clear, Interac is not a credit card network. We process debit payments.

We work closely with the FCAC to adhere to the code of conduct for the payment card industry in Canada. That code covers both credit and debit payments, which is important to note.

Interac is a uniquely Canadian-owned and -operated entity, so we only serve the Canadian market.

[Tony Van Bynen, Liberal, Newmarket—Aurora, ON]

Mr. Peters, what about your organization?

[Brian Peters]

As a processor, we adhere to code-of-conduct requirements to provide the disclosure of cost and price changes, both up and down. Per the code of conduct, we provide businesses with the opportunity to leave. A small business can leave Stripe with just a few clicks, and there are many other options in the market.

Per the code of conduct, we have to adhere to those obligations through our partners.

[Tony Van Bynen, Liberal, Newmarket—Aurora, ON]

Thank you.

[The Chair, Liberal, Joël Lightbound]

Thank you, MP Van Bynen.

Mr. Patzer, the floor is yours for five minutes.

[Jeremy Patzer, Conservative, Cypress Hills—Grasslands, SK]

Thank you, Chair.

Mr. Peters, do you have any aspirations to be a board member yourself one day?

[Brian Peters]

Sure.

[Jeremy Patzer, Conservative, Cypress Hills—Grasslands, SK]

What salaries would people get on the board of Stripe?

[Brian Peters]

I do not know.

[Jeremy Patzer, Conservative, Cypress Hills—Grasslands, SK]

Do they get stock options?

[Brian Peters]

I do not know how their compensation is set.

[Jeremy Patzer, Conservative, Cypress Hills—Grasslands, SK]

Are there bonuses paid out? Do you know?

[Brian Peters]

I don't know, but I would surmise it is not performance-based.

[Jeremy Patzer, Conservative, Cypress Hills—Grasslands, SK]

It's not performance-based. That's interesting.

Are shares in the company, or anything like that part of it at all?

[Brian Peters]

I do not know how the compensation is set.

[Jeremy Patzer, Conservative, Cypress Hills—Grasslands, SK]

You want to be a board member one day, but you don't even know what the compensation is for that.

Is that what you are saying?

[Brian Peters]

I've served on the boards of non-profits. The role of most boards is to provide strategic advice to the leadership of the organization they're part of. That is worthwhile work.

[Jeremy Patzer, Conservative, Cypress Hills—Grasslands, SK]

I'm a little concerned, because you've come here today and said that you're okay with ripping off Canadians.

The fee here is 2.9%. What's the fee in the United States?

[Brian Peters]

It's comparable.