RBC and BMO Look to Offload Payments Processors

Francisco Partners is in discussions to acquire Moneris, the payment processing joint venture owned by Royal Bank of Canada and Bank of Montreal. The potential transaction would see two of Canada’s largest financial institutions divest from the merchant services provider, marking a significant shift in their operational approach to payment infrastructure.

As of May 3, 2026, reports indicate that the private equity firm Francisco Partners is the lead party in negotiations to purchase the company. Moneris operates as one of the largest payment processors in Canada, providing point-of-sale (POS) and e-commerce payment solutions to a vast network of merchants across the country.

Divestment of Payment Infrastructure

The move by Royal Bank of Canada (RBC) and Bank of Montreal (BMO) to offload Moneris reflects a broader trend among North American banks to distance themselves from the direct ownership of payment processing hardware and software. For years, the joint venture allowed RBC and BMO to capture a significant portion of the merchant acquiring market in Canada, but the landscape of financial technology has evolved rapidly.

Financial institutions are increasingly moving toward a model where they provide the capital and regulatory framework while partnering with specialized fintech firms to handle the technical execution of payment processing. This shift allows banks to reduce the capital expenditures associated with maintaining payment hardware and the operational risks of managing rapidly changing software ecosystems.

By transitioning from owners to partners, banks can refocus their resources on core lending and wealth management services while still offering payment solutions to their corporate clients through third-party integrations.

The Role of Francisco Partners

Francisco Partners specializes in investments in technology and technology-enabled businesses. The firm’s interest in Moneris aligns with its strategy of acquiring established technology platforms that possess strong market positions but may benefit from the operational efficiencies and aggressive growth strategies typical of private equity ownership.

Moneris holds a dominant position in the Canadian market, which provides a stable foundation of recurring revenue. For a private equity buyer, the opportunity lies in modernizing the platform’s legacy systems and expanding its service offerings to compete more effectively against global competitors and nimble fintech startups that have entered the Canadian space.

Market Context and Competition

The Canadian payment processing market has faced increasing pressure from international players and the rise of integrated software-as-a-service (SaaS) payment providers. Companies such as Square and Shopify have disrupted the traditional merchant services model by bundling payment processing with business management tools, forcing traditional processors to innovate or risk losing market share.

Moneris has historically relied on its deep integration with the banking channels of RBC and BMO. A transition to private equity ownership would likely require the company to diversify its acquisition channels and reduce its reliance on its former parent banks to attract a wider array of small and medium-sized enterprises.

The potential sale also highlights the changing valuation of payment processors. While these companies were once viewed as high-margin utility providers for banks, they are now viewed as technology platforms that require constant investment in cybersecurity, cloud infrastructure and user experience to remain competitive.

Strategic Implications for RBC and BMO

For RBC and BMO, the sale of Moneris would likely result in a substantial cash infusion and the removal of a complex joint-venture structure from their balance sheets. Joint ventures of this scale often require significant coordination between the partner banks regarding strategic direction and capital injections.

The divestment indicates that both institutions may view the direct ownership of a processor as a non-core activity. This aligns with recent global banking trends where institutions prioritize digital transformation and artificial intelligence over the ownership of physical payment terminals and the associated merchant support infrastructure.

Neither Royal Bank of Canada nor Bank of Montreal has issued a formal statement confirming the final terms of a deal with Francisco Partners as of May 3, 2026. The outcome of these talks will likely determine whether Moneris continues to operate as a primary partner for the two banks or if a new service-level agreement will be established to maintain continuity for existing merchant clients.