Fiserv Buys Stake in TD Bank’s Merchant Processing Business

July 25, 2025 • FinTech News
Fiserv Buys Stake in TD Bank’s Merchant Processing Business

Strategic Acquisition Expands Fiserv’s Canadian Footprint

Fiserv has entered into a significant agreement with TD Bank to acquire a portion of its Canadian merchant processing operations. This strategic move will transfer approximately 3,400 TD merchant relationships representing 30,000 retail locations to Fiserv’s industry-leading payment platforms. The deal marks Fiserv’s latest expansion in the Canadian market, where it has been actively growing its presence in recent years.

Key Components of the Partnership

The comprehensive agreement includes two major elements:

  1. Asset Acquisition: Fiserv will integrate TD’s merchant portfolio into its processing infrastructure, transitioning businesses to the Clover point-of-sale system – Fiserv’s flagship solution for in-store payments

  2. Technology Partnership: TD Merchant Solutions will leverage Fiserv’s payment technology through a long-term management services agreement

Benefits for TD Bank and Its Merchants

Barbara Hooper, Group Head of Canadian Business Banking at TD, emphasized the customer-focused rationale:
“By combining Fiserv’s innovative Clover platform with our banking solutions, we’re giving Canadian businesses access to cutting-edge payment technology that helps them operate more efficiently and grow their sales.”

The partnership allows TD to:
✅ Modernize its merchant services offering
✅ Reduce long-term technology costs
✅ Maintain competitive positioning against digital-native payment providers

Strategic Importance for Fiserv

This deal represents a significant milestone in Fiserv’s:

  • Canadian market expansion strategy

  • Clover platform adoption efforts

  • Bank partnership initiatives

Fiserv gains immediate scale in Canada while demonstrating the value of its technology to other potential banking partners.

Market Context and Competitive Landscape

The Canadian payments market is undergoing rapid transformation with:

  • Increased adoption of cloud-based POS systems

  • Growing demand for omnichannel payment solutions

  • Intensifying competition from fintech disruptors

This partnership positions both companies more strongly against competitors like Square, Lightspeed, and Moneris.

Implementation Timeline and Next Steps

The transaction is expected to close in late 2024, subject to regulatory approvals. Post-closure, merchants will experience:

  • Seamless transition to Fiserv systems

  • Access to Clover’s full feature set

  • Continued support from TD for banking services

Long-Term Industry Implications

This collaboration signals:

  1. Growing convergence between banking and payments technology

  2. Increased willingness among banks to partner with fintech providers

  3. Accelerating innovation in Canadian merchant services

With this deal, Fiserv and TD are creating a powerful blueprint for how traditional financial institutions and payment technology leaders can collaborate to deliver superior merchant solutions.