In a strategic move set to enhance their embedded finance capabilities, the US-based financial services company, Fiserv, has announced its intention to acquire Payfare, a program management solutions provider focusing on gig-economy workforces. The acquisition aims to integrate Payfare’s offerings, such as card program management, a white-label consumer app, and a microservices orchestration layer, with Fiserv’s established strengths in processing, bank ledgers, and value-added services. This merger is poised to significantly bolster Fiserv’s embedded banking, payments, and lending solutions, enabling them to deliver more comprehensive financial services to a diverse range of clients.
The acquisition, which is anticipated to conclude in the first half of 2025, is currently pending shareholder and court approvals along with other standard closing conditions. Frank Bisignano, Fiserv’s chair, president, and CEO, has emphasized the potential impact of this acquisition on accelerating the delivery of embedded finance solutions, ultimately enhancing client success. Payfare is recognized for providing instant earnings access via a digital banking platform to gig-economy workers through partnerships with companies such as DoorDash, Lyft, and Uber. This acquisition promotes financial security and inclusion for gig workers, leveraging Payfare’s innovative digital solutions.
Marco Margiotta, CEO of Payfare, also pointed out the significant advantages that Fiserv’s scale and technology bring to serving large and growing organizations while delivering a modern digital experience. This acquisition highlights overarching trends within the fintech industry by focusing on the seamless integration of comprehensive financial services into various platforms, supporting a diverse and expanding workforce. The synergy created through the combined expertise of Fiserv and Payfare is expected to drive substantial innovation in embedded finance solutions, ultimately offering enhanced value to clients and advancing financial inclusion in the gig economy.