Fiserv, a global leader in payments and financial services technology, announced today its definitive agreement to acquire Toronto-based Payfare (TSX: PAY). The deal is expected to close in the first half of 2025, pending shareholder and court approvals and other customary conditions.
Payfare, known for its innovative program management solutions tailored to new economy workforces, has been a pioneer in providing instant banking solutions for gig workers and hourly employees. Earlier this year, the company initiated a strategic review to explore opportunities for growth, a move that has now culminated in this acquisition.
“Payfare has built a reputation as an innovator in workforce payments for gig-economy companies,” said Frank Bisignano, Chairman, President, and CEO of Fiserv. “Together, we can accelerate the delivery of embedded finance solutions for all of our clients, empowering their next chapter of success. We look forward to welcoming the talented Payfare team to Fiserv.”
The acquisition aims to integrate Payfare’s card program management capabilities, white-label consumer apps, and microservices orchestration layer with Fiserv’s expertise in processing, bank ledgers, and value-added services. This combined offering is expected to strengthen Fiserv’s embedded finance solutions, providing large enterprises and financial institutions with more robust options in banking, payments, and lending.
Marco Margiotta, CEO and Founding Partner of Payfare, expressed enthusiasm about the partnership. “Joining Fiserv is a tremendous opportunity for Payfare,” said Margiotta. “We recognize that Fiserv gives us enhanced scale and technology which better positions us to serve a growing number of large organizations and deliver a modern digital experience.”
Payfare’s recent innovations, such as its Pronto platform, which provides Canadian hourly workers with on-demand access to earned wages, have highlighted the company’s commitment to addressing the needs of modern workforces. With over 10 million hourly employees in Canada alone, the platform offers financial flexibility and aligns with the growing demand for immediate access to earnings.
The acquisition promises to elevate both companies’ capabilities in embedded finance, further transforming how organizations manage workforce payments and financial solutions.
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