RBC and BMO in talks to sell Moneris to Verifone owner

⦿ Executive Snapshot

What: RBC and BMO are in negotiations to sell their payments processing joint venture Moneris to Francisco Partners.
Who: Royal Bank of Canada, Bank of Montreal, Francisco Partners.
Why it matters: This potential sale reflects a broader industry trend of banks divesting payment operations amid increasing competition in the payments sector.

RBC and BMO are in talks to sell Moneris, with the deal potentially exceeding $2 billion.
Francisco Partners, which owns Verifone and has a stake in Paysafe, is the prospective buyer.
Moneris was founded in 2000 by RBC and BMO and processes approximately one-third of all business transactions in Canada.
The discussions come after reports last summer indicated that the two banks were actively seeking to offload their payment operations.
The trend of banks divesting payment services has been noted, with TD previously selling part of its merchant processing business to Fiserv.

The sale of Moneris aligns with a growing trend where banks are divesting payment operations to focus on core banking services.
Increased competition from payment firms like Stripe and Adyen has pressured traditional banks to rethink their involvement in payment processing.

Immediate market implications include a potential shift in the competitive landscape of payment processing in Canada.
Long-term implications may involve a reallocation of resources for RBC and BMO, allowing them to concentrate on banking services rather than payment processing.

Potential regulatory hurdles may arise as the transaction involves significant financial entities and operations.
The competitive landscape could change rapidly, impacting the valuation and strategic fit of Moneris within Francisco Partners' portfolio.

A formal deal could be finalized by summer 2026, marking a significant shift in the Canadian payments landscape.
Future developments that indicate the success or failure of this sale will include the response from competitors and regulatory bodies regarding the transaction.