Sale of Canadian Payments Giant Moneris to U.S. Firm Raises Data Privacy Concerns
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The planned sale of Moneris Solutions, one of Canada’s largest payment-processing companies, to U.S.-based investment firm Francisco Partners is raising new questions about data privacy and Canada’s digital sovereignty, according to a CBC News report published Friday, August 14.
Royal Bank of Canada (RBC) and Bank of Montreal (BMO) announced on August 10 that they had reached an agreement to sell Moneris to San Francisco-based Francisco Partners for approximately C$2 billion, with the two banks expected to split the proceeds equally. The transaction remains subject to regulatory approvals and customary closing conditions.
The deal is significant because of Moneris’s large role in Canada’s payment infrastructure. The company says it supports payment processing at more than 325,000 merchant locations and handles roughly one in every three transactions across Canada.
CBC reported that analysts have raised concerns about what the transfer of such a major payments company to U.S. ownership could mean for digital sovereignty and the protection of payment-related information, particularly amid ongoing trade tensions between Canada and the United States.
Moneris has said the change in ownership will not alter its commitment to the Canadian market. The company says its headquarters, employees and technology infrastructure will remain in Canada, where it employs nearly 2,000 people.
RBC and BMO are also expected to continue referring clients to Moneris under long-term agreements.
The deal remains subject to Canadian regulatory approval.
