Fiserv Inc., a leading financial infrastructure services firm, has announced its acquisition of the Canadian payments startup Payfare Inc. in a deal worth C$201.5 million ($140 million). This strategic move will allow Fiserv to enhance its payments offerings for gig economy workers, expanding its reach and capabilities in the financial technology sector.
Fiserv is renowned for its comprehensive range of products and services that support banking, payments, and financial management. The company’s offerings include electronic payment solutions, core banking systems, financial risk management, investment management, and more. With a diverse client base that includes banks and credit unions, Fiserv plays a crucial role in facilitating secure and efficient financial transactions.
On the other hand, Payfare has gained recognition for its innovative program management products tailored to new economy workforces, particularly gig workers and hourly employees. The Payfare Pronto platform, one of its flagship products, enables Canadian hourly workers to access their earned wages on-demand. This solution has resonated well with gig workers who rely on digital banking platforms for timely access to funds, especially during financial emergencies.
Notably, Payfare has established partnerships with prominent gig-economy platforms such as Uber Technologies Inc. and Lyft Inc., further solidifying its position in the market. Despite undergoing a strategic review earlier this year, the acquisition by Fiserv signals a new chapter for Payfare, with the potential for growth and expansion under a larger financial services umbrella.
Fiserv’s Chief Executive, Frank Bisignano, expressed confidence in Payfare’s reputation as a top innovator in payments for gig-economy workers. The integration of Fiserv’s expertise in processing, bank ledgers, and value-added services with Payfare’s card program management capabilities is expected to strengthen Fiserv’s position in embedded finance. This collaboration aims to provide financial services customers with enhanced capabilities in payments and lending, catering to evolving market demands.
Payfare’s founder and CEO, Marco Margiotta, sees the acquisition as an opportunity to scale up and serve larger organizations in the financial services industry. By leveraging Fiserv’s resources and market presence, Payfare can accelerate its technological advancements and reach a broader customer base.
In conclusion, the acquisition of Payfare by Fiserv represents a strategic alignment of two innovative companies in the financial technology space. This partnership is poised to drive growth, innovation, and enhanced services for gig economy workers, ultimately benefiting both companies and their customers.
