Canada’s largest banks are advancing negotiations to offload their long-standing payments processing partnership. The Royal Bank of Canada and the Bank of Montreal are reportedly engaged in advanced discussions to transfer ownership of their jointly held enterprise, Moneris, to the U.S. private equity firm Francisco Partners. Industry professionals now indicate the transaction could command a price exceeding two billion dollars, according to insights shared by the FT.
Moneris has operated as a cornerstone of Canadian commerce since its launch two decades ago.
Formed through an equal partnership between the two institutions, it has grown into the nation’s dominant merchant-services provider.
The company supports roughly 325,000 business clients, managing everything from in-store card swipes to sophisticated online and mobile checkout solutions.
Its reach is immense: analysts estimate it processes about one in every three commercial transactions across the country.
With annual revenues hovering near $700 million, Moneris generates steady cash flows that have made it an attractive asset even as broader market forces evolve.
The potential sale reflects a calculated strategic pivot by both banks.
Over the past year, RBC and BMO have quietly evaluated ways to streamline their portfolios amid intensifying rivalry from nimble technology-driven entrants.
Companies such as Stripe and Adyen have captured market share by offering faster, more flexible payment platforms that appeal to modern merchants seeking lower costs and seamless digital experiences.
Rather than compete head-on in this rapidly changing arena, traditional lenders are choosing to concentrate resources on their core lending, wealth-management, and deposit businesses.
Initial explorations of a Moneris divestiture surfaced in mid-2025, and momentum has clearly built since then. Francisco Partners emerges as a logical successor.
The firm, which oversees roughly $45 billion in assets, specializes in technology and software investments.
It controls Verifone, a global payments hardware and software leader, and holds a meaningful position in Paysafe.
Adding Moneris would create powerful synergies, allowing the buyer to combine established Canadian merchant networks with its international footprint.
The private equity group’s track record suggests it will look to invest in technology upgrades and expansion, potentially accelerating innovation that the banks might have been slower to pursue.
Sources familiar with the matter caution that while a summer closing remains possible, the talks are not yet finalized. Deal terms could still shift, and rival bidders might surface before any binding agreement is signed.
Neither bank nor Moneris has issued public statements, underscoring the sensitivity of the process.
For Canada’s banking sector, the move highlights a wider trend of institutions shedding non-core payment operations to sharpen focus and boost shareholder returns.
Success here could encourage similar reviews at other lenders. Merchants, meanwhile, may see continued investment in payment technologies regardless of ownership, as the industry races toward contactless, embedded, and artificial intelligence enhanced solutions.
Ultimately, this transaction—if completed—would mark one of the largest Canadian fintech deals in recent memory. It underscores how private capital is increasingly stepping into spaces once dominated by big banks, providing positive momentum while also allowing established players to recalibrate for the digital economy.
