Wells Fargo and Fiserv have announced that they will end their long-standing merchant acquiring joint venture, Wells Fargo Merchant Services (WFMS), on April 1, 2025. The joint venture, in which Fiserv acquired a 40% stake following its merger with First Data in 2019, is set to conclude after nearly two decades of collaboration.
According to a recent SEC filing, Fiserv expects to receive either a cash payment or assets equivalent to the value of its share in WFMS. Additionally, the payment processing giant anticipates an impairment charge ranging between $400 million and $600 million due to the dissolution of the partnership.
Despite the conclusion of the joint venture, the two companies have agreed on a new multiyear agreement. Under this deal, Fiserv will continue to provide payment processing services for both existing and future Wells Fargo merchant clients.