BMO, RBC Plan Sale of Canadian Payments JV

Bank of Montreal (BMO) and Royal Bank of Canada (RBC) are planning to sell their Canadian payments joint venture. The joint venture was established to process Canadian payments, but the banks are looking to divest their stakes due to regulatory hurdles and high operating costs. The sale is expected to be completed by mid-2023.

Royal Bank of Canada (RY.TO) and Bank of Montreal (BMO.TO) are planning to sell their Canadian payments joint venture, Moneris. The sale is expected to be completed by mid-2023, according to sources familiar with the matter [1].

Moneris, founded in 2000, is one of the largest payment processors in Canada, handling one in every three business transactions in the country. It offers digital, mobile, and in-store payment systems for about 325,000 merchant locations, according to its website. The joint venture generates nearly $700 million in annual revenue, which sources estimate could value the business at up to $2 billion [1].

The sale is not guaranteed, and the owners could ultimately retain some or all of the business. Boutique investment bank PJT Partners (PJT.N), along with investment bankers from RBC Capital Markets and BMO Capital Markets, are advising on the sale effort [1].

The decision to sell Moneris comes amid increasing digitization in the North American payments industry, where banks have been divesting their payments businesses due to regulatory hurdles and high operating costs. Many banks have found willing buyers in payments companies and private equity firms, which value the recurring fee revenue generated by payments businesses [1].

Last month, Canada's TD Bank (TD.TO) announced a strategic partnership with Fiserv (FI.N) in relation to its Canadian merchant payments business, further highlighting the trend in the industry [1].

References:
[1] https://www.reuters.com/legal/transactional/rbc-bmo-planning-sale-2-billion-canadian-payments-venture-sources-say-2025-08-14/