Fiserv snaps up Canadian EWA fintech Payfare in $147m deal
US fintech heavyweight Fiserv has entered into a definitive agreement to acquire Payfare, a Canada-based earned wage access (EWA) firm, to broaden its payment options for gig economy workers.
Fiserv acquires Payfare for $147 million
As per the agreement’s financial terms, Fiserv will purchase all Payfare common shares for CAD 4.00 each (about $2.92), with the total transaction worth around CAD 201.5 million (approximately $147 million).
This purchase price marks a roughly 90% premium compared to Payfare’s closing share price on the Toronto Stock Exchange on 20 December 2024.
The deal is expected to close in the first half of 2025, pending shareholder and other customary approvals.
Founded in 2015, Payfare claims to serve “millions of next-generation workers around the globe” with a mobile banking app and debit card offering, that provides instant access to wages and relevant cash-back rewards. Its client roster features Uber, Lyft, and DoorDash.
Fiserv’s CEO, chairman, and president, Frank Bisignano – recently appointed by Trump to lead the Social Security Administration – states that with the acquisition of Payfare: “We can accelerate the delivery of embedded finance solutions for all of our clients.”
Commenting on the deal, Marco Margiotta, Payfare CEO, says: “Our Board conducted a thorough strategic review process together with our financial advisors, having evaluated numerous acquisitions, commercial partnerships, and other opportunities, and concluded that the transaction is in the best interests of the company, its various stakeholders and its shareholders with certainty of value with an all-cash offer.”
