Royal Bank of Canada and Bank of Montreal are exploring the sale of Moneris, their jointly owned Canadian payments company, in a deal that could value the business at up to $2 billion, according to four sources familiar with the matter. Founded in 2000, Moneris is among Canada’s largest payment processors, handling roughly one in three business transactions nationwide. The company serves around 325,000 merchant locations with digital, mobile, and in-store payment solutions.
The potential sale remains in the early stages, with no guarantee of completion, sources said. The owners could opt to retain part or all of the business. Boutique investment bank PJT Partners, along with RBC Capital Markets and BMO Capital Markets, is advising on the process. With annual revenue near $700 million, Moneris’ estimated valuation could reach around $2 billion or slightly less.
Declining to comment were BMO, Moneris, and PJT Partners, while RBC did not respond to inquiries. The move comes amid a broader trend of North American banks divesting payments operations as digitization accelerates and competitive pressures demand ongoing investment. Strategic buyers — including payments companies expanding through mergers and acquisitions — and private equity firms seeking stable, recurring revenue streams have been active in the sector.
In a related development, TD Bank recently announced a strategic partnership with Fiserv involving its Canadian merchant payments business.
Source: Reuters
