Why Ecosystem Connectors Matter As Fintechs Scale

As access to payment ecosystems broaden, more fintechs and Payments Service Providers are pursuing direct participation in networks like Interac e-Transfer and Payments Canada’s forthcoming Real-Time Rail (RTR).  This is a positive shift. Greater access drives competition, expands choice and accelerates innovation for Canadians.

Network participation is a milestone, not the finish line

As fintechs scale, participation becomes more complex – operational, technical and regulatory. Becoming a direct participant signals maturity. It requires capital investment, governance discipline and the ability to operate continuously within tightly regulated, highly resilient environments. Direct participants take on heightened responsibilities spanning risk management, compliance, liquidity, system uptime, fraud controls and incident response. 

Approval is only the starting point. Ongoing supervision, audits, certification requirements and evolving technology standards demand dedicated teams and sustained investment. Even with direct connectivity, many participants continue to rely on settlement agents and specialized partners to manage clearing, settlement, and treasury operations. Direct access does not always eliminate dependencies on specialized partners.

For some organizations, owning this complexity makes sense. For many others, particularly those scaling rapidly or serving niche markets, the cost, operational and compliance burden can outweigh the benefits.

The reality of hybrid models

Network participation models are rarely one size fits all. Increasingly, fintechs, PSPs and financial institutions adopt hybrid approaches, combining direct participation where it delivers value with ecosystem connectors that handle processing, compliance and infrastructure at scale.

This flexibility matters. Payments volumes are growing, expectations are elevated, and financial services are ‘always on.’ Supporting 24/7 operations, redundancy, regulatory reporting, AML, fraud and liquidity management along with customer support requires deep specialization and constant investment. Infrastructure is not static. It evolves alongside regulation, threat landscapes and customer behaviour. 

Hybrid models allow organizations to scale with confidence while staying focused on their core value proposition.

Connectors do more than connect

Ecosystem connectors like Peoples Group are more than technical intermediaries, they are infrastructure partners.

Whether providing access to multiple payment rails, deposit solutions or settlement services through integrated platforms, connectors help firms navigate complexity without fragmenting their operations. They can help absorb the operational and regulatory lift required to support resilient, compliant, high volume financial services, enabling fintechs to innovate faster, enter new markets, and adapt as access models change.

As Canada’s payments ecosystem continues to evolve, connectors will not be displaced by expanded access. In many cases, their role becomes more critical. Collaboration between networks, participants, and trusted infrastructure partners remains the foundation of sustainable scale. 

Will Keliehor is Chief Client Officer at Peoples Group, bringing decades of global expertise in Financial Services and FinTech innovation.