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Published on 19 September 2025•8 minutes

Canada vs Europe: fintech advantages in SaaS – and how Airwallex bridges the gap

Airwallex Editorial Team

Canada vs Europe: fintech advantages in SaaS – and how Airwallex bridges the gap

Navigating international payments between Canada and Europe presents unique challenges for SaaS businesses. While Canada's Real-Time Rail (RTR) system, set to go live in 2025, aims to provide instant payment capabilities nationwide ¹, European markets have already established infrastructure with the UK's Faster Payments Service launched in 2008 and the EU's SEPA Instant Credit Transfer introduced in 2017 ¹. This disparity creates operational complexities for businesses operating across both regions.

The fintech landscape reveals stark contrasts between these markets. According to McKinsey & Company, revenues in the fintech industry are expected to grow almost three times faster than those in the traditional banking sector between 2023 and 2028 ¹. For SaaS companies managing operations across the Atlantic, understanding these regional differences becomes crucial for optimizing financial operations and maintaining competitive advantage.

The Canadian fintech landscape: opportunities and limitations

Canada's payments market reached 22.8 billion transactions in 2024, with IMARC Group expecting it to reach 38.7 billion transactions by 2033, exhibiting a growth rate of 5.6% during 2025-2033 ². This growth stems from the thriving e-commerce industry, where 27 million eCommerce users in Canada accounted for 75% of the Canadian population in 2023 ².

The Canadian market shows strong digital adoption patterns. In 2023, 78% of Canadians used internet to conduct online banking ². This digital-first approach creates opportunities for SaaS businesses, particularly those offering financial services or requiring seamless payment integration.

However, Canadian businesses face infrastructure challenges. While the upcoming Real-Time Rail system promises instant payments, the current landscape still relies on traditional payment rails that can delay cross-border transactions. According to data analytics company LexisNexis, up to 50% of payments that don't complete or are delayed are due to simple data entry problems such as incorrectly typing the bank name and address, or getting the account numbers, IBAN or Swift BIC codes wrong ³.

Regulatory environment and innovation

Canada introduced its Consumer-Driven Banking Framework in the 2024 federal budget ⁴, positioning itself to catch up with global open banking trends. This framework aims to enable greater financial innovation while maintaining security standards.

For SaaS companies, this evolving regulatory landscape presents both opportunities and challenges. Businesses must navigate compliance requirements while leveraging new capabilities for embedded finance and payment solutions. The ⁵ provides a modern alternative to traditional business bank accounts, giving businesses the ability to open domestic and foreign currency accounts in minutes.

European fintech advantages: established infrastructure and innovation

Europe's fintech ecosystem benefits from mature payment infrastructure and progressive regulations. The European Central Bank's 2022 study reported that consumers are increasingly opting for instant payment solutions ¹. This consumer preference drives innovation and adoption of advanced payment technologies.

The European Union is preparing for a significant evolution in its Open Banking framework with PSD3 implementation scheduled for 2026 ⁴. This regulatory framework enables seamless integration of financial services into SaaS platforms, creating opportunities for embedded finance solutions.

Speed and efficiency advantages

European payment systems demonstrate impressive efficiency. Globally, 89% of payments that flow through the Swift network arrive at the destination bank within an hour, with half making it all the way to the beneficiary account in less than five minutes ³. This speed advantage gives European-based SaaS companies better cash flow management capabilities.

Open banking enables businesses to bypass traditional card networks, lowering costs and improving payment efficiency ⁶. Businesses can receive payments instantly through open banking, improving cash flow and creating a better experience for customers ⁶.

Challenges in the European market

Despite advantages, European markets face unique challenges. The European Banking Authority's 2024 assessment of 2022 fraud data revealed that instant payments exhibit notably higher fraud rates compared to traditional credit transfers ¹. This requires SaaS companies to implement robust security measures.

Mastercard's Economic Impact Study indicates that instant payment systems require substantial infrastructure enhancements to support real-time or near-real-time operations ¹. These infrastructure requirements can create barriers for smaller SaaS companies entering European markets.

Key trade-offs for SaaS businesses

Payment processing speeds

The speed differential between Canadian and European payment systems creates operational challenges. While European businesses benefit from instant payments, Canadian companies may experience delays that impact cash flow. Real-time payments systems are expected to generate $173 billion in additional economic output by 2026 according to the Center for Economic and Business Research ³.

For SaaS businesses operating subscription models, payment processing speed directly impacts revenue recognition and customer satisfaction. ⁷ that help bridge this gap, enabling businesses to operate efficiently across both markets.

Currency management complexities

Exchange rate fluctuations pose significant challenges for cross-border SaaS operations. Float's experience illustrates this challenge – a team member earning $10,000 USD per month lost up to $759, which is 6% of income, due to exchange rate fluctuations ⁸. Float implemented a make good exchange rate bonus system, reviewing balances twice yearly to compensate for losses ⁸.

International transfer fees compound these challenges. Wise international transfer fees equate to roughly half a percent of the amount transferred, or $50 on a $10,000 payment ⁸. These costs accumulate quickly for SaaS businesses with regular cross-border transactions.

Regulatory compliance burden

Navigating dual regulatory frameworks creates complexity for SaaS businesses. Currently, 195 countries each have their own payments systems, regulations, and levels of technological maturity ³. This fragmentation requires specialized expertise and resources.

Compliance is essential in the financial technology industry, and working within a constantly evolving regulatory framework requires dedication ⁶. SaaS companies must maintain compliance teams or partner with providers who can manage these requirements.

How Airwallex bridges the Canada-Europe gap

Unified global infrastructure

Airwallex, established in Melbourne in 2015 and currently valued at over US$5.6 billion ⁹, provides infrastructure that seamlessly connects Canadian and European payment systems. The platform offers ⁷, eliminating the need for separate banking relationships in each region.

The ⁵. This unified approach reduces operational complexity while maintaining compliance with regional regulations.

Advanced automation capabilities

Automation addresses many cross-border payment challenges. AI-powered automation can streamline and accelerate invoice processes, catching fraud and errors along the way ¹⁰. Modern AP automation solutions provide real-time, data-driven insights and can connect with ERP and accounting systems ¹⁰.

⁷, reducing manual processes that often cause delays and errors in cross-border transactions. This automation capability proves particularly valuable when managing different time zones and business hours between Canada and Europe.

Multi-currency optimization

Managing multiple currencies efficiently requires sophisticated infrastructure. The global fintech market, estimated at USD 133.96 billion in 2024 and projected to reach USD 412.65 billion in 2032 ¹¹, drives innovation in multi-currency solutions.

⁷, enabling teams to operate seamlessly across borders without constant currency conversion. This capability reduces transaction costs and simplifies expense management for distributed teams.

Real-world success stories

McLaren Racing's transformation

⁵, demonstrating how established organizations leverage modern payment infrastructure. McLaren Racing has won 183 Formula 1 Grand Prix, three Indy 500s and the 24 Hours of Le Mans ¹², requiring sophisticated financial operations across multiple jurisdictions.

The racing team's CFO Laura Bowden manages a team where there are 35 members of the immediate finance team while the extended team has close to 100 members ¹³. Managing international payments efficiently proves crucial for their global operations.

RYSE's operational efficiency

⁵. This transformation illustrates how SaaS businesses can overcome traditional banking limitations.

The ability to manage cross-border payments efficiently enables companies like RYSE to focus on growth rather than administrative overhead. International transfers are expected to increase five percent per year until 2027 ³, making efficient payment infrastructure increasingly critical.

Implementation strategies for SaaS businesses

Assessing your current infrastructure

Before implementing cross-border payment solutions, evaluate existing systems. Manual processes, lack of visibility, inability to scale, late payment woes, clunky outdated systems, and staffing shortages are common pain points for mid-sized businesses ¹⁰. Identifying these pain points helps prioritize improvements.

Consider your transaction volumes and patterns. In 2022, penetration of digital payments went up to 89% ¹⁴, with those using two or more forms of digital payments growing to 62%, up from 51% in 2021 ¹⁴. Understanding your payment mix helps optimize infrastructure choices.

Building for scalability

Scalability requires flexible infrastructure. Embedded finance is revolutionizing the financial landscape by integrating financial services into non-financial platforms ¹⁵. The Global Embedded Finance Service Companies Size was estimated at USD 3148.69 million in 2023 and is projected to reach USD 4416.15 million by 2029 ¹⁵.

¹⁶ enable SaaS platforms to integrate payment capabilities directly into their offerings. This approach reduces friction for customers while creating new revenue streams.

Managing compliance and risk

Compliance management requires ongoing attention. As of the end of 2024, 43 countries are expanding beyond traditional Open Banking into broader Open Finance solutions ⁴. Staying current with regulatory changes proves essential for maintaining operations.

Security has improved with open banking, giving users more control over who accesses their financial data and how it is used ⁶. Implementing robust security measures protects both your business and customers.

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Future-proofing your payment infrastructure

Emerging technologies and trends

Blockchain technology has the potential to help financial institutions leapfrog to an infrastructure that is able to support near-instantaneous transactions and automate complexity ³. Around 90% of central banks globally are currently working on developing a Central Bank Digital Currency ³.

These technological advances will reshape cross-border payments. J.P. Morgan's blockchain division has conducted a successful simulation to test the technical feasibility of cross-border transactions in Singapore dollar and euro Central Bank Digital Currencies using a permissioned blockchain network ³.

Preparing for regulatory changes

Regulatory landscapes continue evolving. The UK established the Open Finance Taskforce in April 2024 ⁴, while 69 countries now have formal Open Banking regulations ⁴. These changes create opportunities for innovative payment solutions.

Mercator Advisory Group Report emphasizes that real-time payments are a key motivator for financial institutions to modernize their infrastructure, with executives anticipating an average timeline of 4.1 years to achieve such modernization ¹. Planning for these changes ensures competitive positioning.

Optimizing your cross-border operations

Cost reduction strategies

Reducing cross-border payment costs requires strategic planning. Globally, 84% of payments are now either direct payments or they have one intermediary according to Thierry Chilosi, Chief Strategy Officer at Swift ³. Minimizing intermediaries reduces costs and processing time.

¹⁷ helps identify cost-saving opportunities. Traditional banking relationships often include hidden fees and unfavorable exchange rates that impact profitability.

Improving operational efficiency

Operational efficiency drives competitive advantage. Best-in-class companies in 2025 are reported to have 79% faster invoice processing ¹⁸. This speed improvement translates directly to better cash flow management.

⁷, streamlining processes that traditionally require significant manual effort. Automation reduces errors while improving processing speed.

Enhancing customer experience

Payment infrastructure directly impacts customer satisfaction. More than two-thirds of Americans expect to have a digital wallet within two years ¹⁴. Meeting these expectations requires modern payment capabilities.

The industry is moving toward instant, seamless transactions that benefit both businesses and consumers ⁶. Implementing solutions that support these expectations improves customer retention and acquisition.

Conclusion: unifying your global payment strategy

The fintech landscape differences between Canada and Europe create both challenges and opportunities for SaaS businesses. While Europe benefits from established instant payment infrastructure and progressive open banking regulations, Canada's growing digital adoption and upcoming Real-Time Rail system present emerging opportunities.

Airwallex bridges these regional gaps by providing unified infrastructure that works seamlessly across both markets. With support from investors including Sequoia, Lone Pine, Greenoaks, DST Global, Tencent, Hillhouse, Salesforce Ventures and MasterCard ⁹, Airwallex has raised over US$900 million in funding ⁹ to build comprehensive solutions for global businesses.

The shift away from legacy banking systems will continue, making payments faster and more cost-effective ⁶. SaaS businesses that implement modern payment infrastructure today position themselves for success in an increasingly connected global economy.

For businesses ready to optimize their cross-border operations, ⁷ with modern capabilities provides the foundation for efficient international growth. The future belongs to businesses that can operate seamlessly across borders, leveraging the best of both Canadian and European fintech innovations.

FAQ

What are the key differences between Canada's and Europe's payment infrastructure for SaaS businesses?

Canada is implementing its Real-Time Rail (RTR) system in 2025 to provide instant payment capabilities, while Europe already has established instant payment infrastructure like SEPA Instant Credit Transfer. European markets generally offer more mature fintech ecosystems with diverse payment methods, whereas Canada is catching up with initiatives like the Federal Reserve's FedNow Service adoption by over a thousand financial institutions.

How does Airwallex help SaaS companies manage cross-border payments between Canada and Europe?

Airwallex provides unified payment solutions that bridge regional gaps by offering multi-currency accounts and streamlined cross-border transactions. Founded in Melbourne in 2015 and having raised over US$900 million in funding, Airwallex enables SaaS businesses to operate seamlessly across both Canadian and European markets without dealing with multiple banking relationships or complex currency conversions.

What challenges do remote SaaS companies face with exchange rate fluctuations between Canadian and European currencies?

Exchange rate fluctuations can significantly impact employee compensation and operational costs. For example, companies like Float have experienced team members losing up to 6% of their monthly income due to currency volatility. This creates challenges for SaaS businesses paying remote teams across Canada and Europe, requiring sophisticated currency management strategies and potentially compensation adjustments.

How can SaaS businesses optimize their banking setup when operating between Canada and Europe?

SaaS businesses should consider opening business bank accounts that support multi-currency operations and cross-border transactions. Airwallex's Global Account offers a comprehensive solution by providing local account details in multiple countries, enabling businesses to collect payments in local currencies while maintaining centralized financial management. This approach reduces foreign exchange costs and simplifies compliance across different regulatory frameworks.

What regulatory considerations should SaaS companies be aware of when expanding from Canada to Europe or vice versa?

SaaS companies must navigate different regulatory frameworks including GDPR compliance in Europe, varying tax obligations, and distinct financial services regulations. European markets often have more complex regulatory requirements but offer standardized frameworks across EU countries. Canadian regulations are generally more straightforward but require understanding of provincial variations and federal compliance requirements for cross-border transactions.

How do payment processing costs compare between Canadian and European markets for SaaS businesses?

Payment processing costs vary significantly between regions, with European markets typically offering more competitive rates due to regulatory caps on interchange fees. Canadian processing costs can be higher, especially for cross-border transactions. However, solutions like Airwallex can help optimize these costs by providing transparent pricing and efficient routing of payments through the most cost-effective channels in both regions.

Citations

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Airwallex Editorial Team

Airwallex’s Editorial Team is a global collective of business finance and fintech writers based in Australia, Asia, North America, and Europe. With deep expertise spanning finance, technology, payments, startups, and SMEs, the team collaborates closely with experts, including the Airwallex Product team and industry leaders to produce this content.

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