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Shopify Capital moves Canadian MCAs to loans after 2025 rule change

Shopify says amended Canadian regulations prompted the April 2026 switch to loans accounted for under ASC 310, in a quarter when Capital made $1.4B in loans and MCAs.

Time in Business Newsroom

Staff

August 5, 2026

1 min read Aug 5

August 5, 2026 1 min read

Filed under shopify · canada · merchant cash advance

1Shopify Capital's Canadian product changed from MCAs to loans in April 2026.
2Shopify cited regulations Canada amended in 2025.
3Capital made $1.4B in loans and MCAs through a bank partnership in the quarter.

Shopify has moved its Canadian Shopify Capital product from merchant cash advances to loans, saying 2025 regulatory changes in Canada drove the decision.

In its Q2 earnings, Shopify said Canada amended regulations in 2025 that affected merchant cash advance products. As a result, starting in April 2026, it transitioned Shopify Capital in Canada to loans accounted for under ASC 310.

Across all geographies, Shopify Capital made $1.4 billion in loans and MCAs during the quarter, through a bank partnership.

Source reporting: deBanked.

shopifycanadamerchant cash advanceregulationearnings

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