Fiserv Acquires Canadian Fintech Firm Payfare
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US-based payments technology company Fiserv has agreed to acquire Payfare, a leading Canadian digital banking platform serving the gig economy, according to Reuters. The deal, for an undisclosed sum, will expand Fiserv's presence in the payments technology market, particularly within the rapidly growing gig economy sector where Payfare holds a significant presence.
The transaction, announced on December 23rd, is expected to close in the first half of 2024. Fiserv's decision to acquire Payfare reflects its strategic commitment to the growing gig economy, a sector characterized by independent contractors and freelancers. Payfare's digital banking platform provides financial services tailored to the specific needs of this workforce, including payment processing, payroll management, and financial wellness tools.
"This acquisition strategically aligns with our growth plans and commitment to empowering the diverse and fast-growing gig economy workforce," said Fiserv Chief Executive Officer Frank Bisignano, as quoted by Reuters.
The deal is valued at approximately C$101.24 million ($70.3 million) based on Payfare's market capitalization as of last week. Fiserv has not yet released further financial details regarding the acquisition.