:U.S. fintech firm Fiserv will buy Canada’s Payfare in a C$201.5 million ($140 million) deal as it looks to expand payments offerings for gig-economy workers, the companies said on Monday.
The transaction, expected to close in the first half of 2025, comes months after Payfare began a strategic review of its business, and values its stock at a 90 per cent premium to last closing price.
The deal will allow Fiserv to expand its footprint in a fast-growing market. Gig-economy workers often access funds provided by such digital banking platforms to tide them over during unforeseen financial emergencies, especially if they lack enough savings.
The acquisition could also mark one of the final undertakings by Fiserv CEO Frank Bisignano, who has been picked by President-elect Donald Trump to head the Social Security Administration.
Payfare’s partners include some of the most recognizable gig-economy platforms such as online delivery company DoorDash and ride-hailing firms Uber and Lyft.
The number of transactions processed by fintech providers that, in partnership with employers, allow employees early access to their wages grew more than 90 per cent year-over-year in 2022, according to an estimate by the Consumer Financial Protection Bureau in July.
Payfare’s shares have declined nearly 66 per cent so far this year, while Fiserv has jumped 55 per cent.
($1 = C$1.4403)
