RBC and BMO Consider Sale of Jointly Owned Payment Processor Moneris

RBC and Bank of Montreal are exploring the sale of their jointly owned payment processing unit, Moneris, which could be valued at up to $2bn. The discussions are at an early stage, with the banks assessing interest from potential buyers. Moneris is Canada's payment processor, serving approximately 325,000 merchant locations across the country.

Royal Bank of Canada (RBC) and Bank of Montreal (BMO) are reportedly exploring the potential sale of their jointly owned payment processing unit, Moneris. The discussions are in the early stages, with the banks assessing interest from potential buyers. Moneris, one of Canada's largest payment processors, serves approximately 325,000 merchant locations across the country. The potential sale could value the business at up to $2 billion [1][2][3][4][5].

Moneris, founded in 2000 by RBC and BMO, manages roughly one out of every three business transactions in Canada. The company generates around $700 million in annual revenues, offering a range of digital, mobile, and in-store payment solutions. The sale is not yet certain, and the banks may decide to keep part or all of the business [1][2][3][4][5].

The exploration of a sale comes amidst a trend of banks divesting their payments operations due to the rapid digitization of the North American payments industry and the need for regular capital investment to stay competitive. Buyers for such operations often include payments companies and private equity firms, attracted to the recurring fee revenues these businesses generate [1][2][3][4][5].

Last month, Fiserv Inc. (FI) collaborated with TD Bank Group to provide technological support to TD’s merchant business and agreed to acquire a part of TD’s merchant processing business in Canada. This move underscores the growing interest in acquiring and integrating payment processing capabilities [1][2][3][4][5].

The banks have not yet provided comments on the matter, and the sale is not guaranteed. Depending on the process and the level of interest from prospective buyers, RBC and BMO may choose to either proceed with the sale or maintain their ownership of Moneris in full or in part [1][2][3][4][5].

References:
1. [https://www.tradingview.com/news/zacks:b7ccaa2a4094b:0-ry-bmo-consider-the-sale-of-canada-payments-venture-moneris/](https://www.tradingview.com/news/zacks:b7ccaa2a4094b:0-ry-bmo-consider-the-sale-of-canada-payments-venture-moneris/)
2. [https://finance.yahoo.com/news/rbc-bank-montreal-explore-sale-115418465.html](https://finance.yahoo.com/news/rbc-bank-montreal-explore-sale-115418465.html)
3. [https://www.electronicpaymentsinternational.com/news/rbc-bank-montreal-sale-moneris/](https://www.electronicpaymentsinternational.com/news/rbc-bank-montreal-sale-moneris/)
4. [https://www.theglobeandmail.com/investing/markets/stocks/FI/pressreleases/34250890/ry-bmo-consider-the-sale-of-canada-payments-venture-moneris/](https://www.theglobeandmail.com/investing/markets/stocks/FI/pressreleases/34250890/ry-bmo-consider-the-sale-of-canada-payments-venture-moneris/)
5. [https://www.fintechfutures.com/m-a/canadas-rbc-and-bmo-reportedly-exploring-potential-sale-of-moneris](https://www.fintechfutures.com/m-a/canadas-rbc-and-bmo-reportedly-exploring-potential-sale-of-moneris)