How two Canadian banks are monetizing payments infrastructure

The sale of Moneris, Canada’s largest payment processor, marks a significant shift in how financial institutions view the 'pipes' of consumer transactions. BMO and RBC sold the firm to private equity for $1.4 billion, signaling that major banks are increasingly moving away from owning the hardware and software used to swipe cards. For retailers and operators, this transition usually leads to a new wave of innovation. Private equity ownership often results in more aggressive product development and faster integration of new payment types like BNPL and cross-border digital wallets. If you currently use Moneris or similar bank-owned processors, expect to see changes in your service agreements and technology stacks. Independent owners are typically more focused on merchant-facing features than banks are. This deal suggests that the next generation of payment tools will be driven by specialized tech firms rather than traditional banking giants. You should keep an eye on your processing fees and hardware upgrade offers as the new ownership takes over. They will likely try to modernize the platform to compete with players like Block or Stripe. This is a good time to audit your current processing costs and see if your provider is keeping pace with modern consumer demands for flexible payment options at the point of sale.

Source: American Banker — Top News

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