Fiserv to acquire Canada’s Payfare in $140M deal to expand payment solutions for gig workers

U.S.-based fintech giant Fiserv is set to acquire Canadian payments platform Payfare in a deal valued at C$201.5 million ($140 million). Announced Monday, the acquisition positions Fiserv to deepen its offerings for gig economy workers, a rapidly growing segment that increasingly relies on digital banking platforms for financial stability.

The transaction, expected to close in the first half of 2025, values Payfare’s stock at a 90% premium over its most recent closing price. This marks a significant milestone for Payfare, which began a strategic review of its operations earlier this year.

Payfare’s partnerships with major gig platforms, including DoorDash, Uber, and Lyft, have made it a key player in financial services for independent workers. These workers often need quick access to earnings to manage financial emergencies or bridge gaps when savings fall short.

According to a report from Reuters, the Consumer Financial Protection Bureau estimates that transactions through fintech providers offering early wage access have surged by over 90% year-over-year as of 2022. This highlights the increasing demand for services like those Payfare provides.

For Fiserv, this acquisition is a move to gain ground in a market with significant growth potential. It also aligns with the company’s strategy to offer broader payment solutions tailored to evolving worker needs.

Payfare’s stock has struggled in 2024, dropping 66%, while Fiserv has seen a strong 55% increase. This acquisition could potentially revitalize Payfare’s position while complementing Fiserv’s strong momentum.

Additionally, this deal may be one of the last major moves by Fiserv CEO Frank Bisignano, who has been tapped to lead the Social Security Administration under President-elect Donald Trump.

With gig-economy platforms continuing to expand their reach, this acquisition underscores Fiserv’s commitment to addressing the unique needs of independent workers.

Founded in 1984, Fiserv is a global leader in fintech and payments, offering a wide range of solutions including banking, global commerce, merchant services, billing, payments, and point-of-sale systems.