Key facts
- Royal Bank of Canada and BMO Financial Group are selling their jointly owned payments processing business, Moneris Solutions.
- Technology investment firm Francisco Partners is acquiring Moneris.
- The transaction is valued at C$2 billion ($1.44 billion).
- RBC and BMO will each receive 50% of the sale proceeds.
- RBC anticipates an after-tax gain of approximately C$475 million from the sale.
Royal Bank of Canada and BMO Financial Group have agreed to sell their jointly owned payments processing business, Moneris Solutions, to technology investment firm Francisco Partners for C$2 billion ($1.44 billion).
Moneris, founded 25 years ago, is one of Canada's largest commerce solutions providers, assisting businesses with payment acceptance and management. Each bank will receive a 50% share from the sale. RBC anticipates recording an after-tax gain of approximately C$475 million from the transaction, which is expected to be completed in the first quarter of fiscal 2027.
The sale marks a significant moment for Canada's payments market, as Moneris has been a key merchant acquiring platform since its inception in 2000. It processes over five billion transactions annually and handles roughly a third of all business transactions in Canada, supporting more than 325,000 points of commerce.
For Francisco Partners, Moneris aligns with its existing payments portfolio, which includes Verifone and a stake in Paysafe. With about $45 billion in assets under management, the firm has the capacity to pursue a platform-building strategy in payments infrastructure. This move is part of a broader North American trend where banks are reducing their exposure to merchant acquiring operations, viewing it as a more capital-intensive and technologically complex business that may be better suited for specialist technology firms or private equity ownership. Banks are increasingly favoring partnership-based fintech models over full ownership of technology subsidiaries, allowing them to focus on core banking activities while maintaining customer relationships through distribution agreements.