What will the Moneris sale cost Canada? | BetaKit
The sale of Moneris to a US firm raises concerns regarding Canadian economic sovereignty and payment infrastructure control.Summary
Canadian payments processor Moneris, co-owned by RBC and BMO, is being sold to a US private equity firm in a deal valued at approximately $2 billion CAD. This transaction means that roughly one-third of Canadian payments could soon be processed by a US-controlled entity, raising significant concerns about economic sovereignty and the control of national commerce clearing.
While some argue that a single processor is not as critical as the underlying payment rails, the loss of domestic control creates potential vulnerabilities. Domestic competitors like Calgary-based Helcim are seeing increased interest from Canadian businesses looking to support local companies. However, the true solution may lie in the development of sovereign, real-time payment rails, which are expected to roll out in late 2024 to provide faster and cheaper settlements.
The Moneris sale serves as a critical wake-up call for Canada to establish a robust and independent payment ecosystem that ensures national financial infrastructure remains under domestic control.
(Source：Betakit)