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Fiserv has finalized its acquisition of Payfare to strengthen its position in embedded financial solutions in a deal that integrates Payfare’s program management capabilities with Fiserv’s expertise in processing, bank ledgers, and value-added services.
Payfare specializes in financial services for gig economy workers by providing real-time payments and digital banking solutions. Its integration into Fiserv is expected to create a more comprehensive suite of embedded banking, payments, and lending services.
As part of the acquisition, 1517452 B.C. LTD., a wholly owned subsidiary of Fiserv, acquired all 48,287,259 outstanding shares of Payfare for C$4.00 per share, totaling approximately C$193.1 million. The company will file an early warning report under Canadian securities laws, with details available on SEDAR+.
Following the completion of the deal, Payfare shares will be delisted from the Toronto Stock Exchange and will no longer be quoted on the OTCQX. Fiserv also plans to apply for Payfare to cease being a reporting issuer.
Payfare adds card management, white-label consumer app, and microservices orchestration
It was in December 2024 that Fiserv agreed to acquire Payfare Inc. following shareholder and court approvals and other customary closing conditions. The deal complements Fiserv’s embedded finance solutions with card program management, a white-label consumer app, and a microservices orchestration layer.
Combined with the strengths of Fiserv in processing, bank ledgers, and integrated value-added services, Payfare’s capabilities will enhance the Fiserv solution in embedded banking, payments, and lending and help meet the needs of large enterprises and financial institutions.
Fiserv recently deepened its relationship with Swift by joining its Partner Programme as a Platform Partner. By enabling connectivity to Swift APIs, Fiserv aims to offer real-time transparency for cross-border payments and allow its client financial institutions to have full visibility on the status of those transactions. With Swift’s global reach and secure network, combined with Fiserv’s role as the world’s largest provider of technology to financial institutions, this partnership offers a potent mix of capabilities. It opens up opportunities for financial institutions worldwide to tap into cutting-edge solutions for modern, efficient, and transparent cross-border payment systems.
Multiple client financial institutions of Fiserv have already shown interest in leveraging the enhanced services the Swift API connectivity provides. The development illustrates a growing demand for speedier and more transparent cross-border transactions in the complex landscape of global finance. The use of APIs (Application Programming Interfaces) is becoming a game-changer in financial services. Fiserv’s involvement in the Swift Partner Programme aims to capitalize on this trend by leveraging APIs for payment modernization. Swift APIs promise to provide an efficient framework to streamline payment processes and offer real-time updates, a crucial feature for cross-border transactions.
