Royal Bank of Canada and Bank of Montreal have reportedly started considering selling their jointly owned payments processor, Moneris.
Following this announcement, the move comes as the banks consider multiple options for the business they founded together. According to Reuters, the deal could reach as much as USD 2 billion.
In addition, the lenders are reportedly in the early stages of exploring a potential sale, requesting anonymity because the discussions are private. Furthermore, advisors include boutique investment bank PJT Partners, as well as RBC Capital Markets and BMO Capital Markets. Both institutions will continue to focus on meeting the needs, preferences, and demands of clients and users in an ever-evolving market, while prioritising the process of remaining compliant with the regulatory requirements and laws of the local industry as well.
More information on RBC and BMO’s decision to explore the sale of Moneris
Moneris represents a payment processor that was developed in order to handle one in every three business transactions nationwide. At the same time, the company currently serves several merchant locations with digital, mobile, and in-store payment systems, aiming to provide customers with a secure and efficient experience.
At the moment, the overall sale is not certain, and the banks also have the possibility to choose to keep part or all of the company. In addition, the potential Moneris sale aligns with the overall broader trends in the North American banking sector, where several financial institutions have increasingly divested payment processing operations.
