The financial infrastructure services firm Fiserv Inc. said today it has entered into an agreement to acquire the Canadian payments startup Payfare Inc. for C$201.5 million ($140 million) in a deal that will enable it to expand its payments offerings for gig economy workers.

Fiserv is a major player in the financial technology sector, offering products and services that support banking, payments and financial management. Its many offerings include electronic payment solutions, such as systems for processing credit and debit card transactions, mobile payments and so on, as well as software for core banking systems, financial risk management, investment management, loan origination and account processing.

The company serves a variety of clients in the financial services industry, including banks and credit unions.

As for Payfare, it’s best known for its innovative program management products that cater to new economy workforces such as gig workers and hourly employees. One of its best known products is the Payfare Pronto platform, which provides Canadian hourly workers with on-demand access to wages they have earned.

The platform has reportedly proven popular among gig workers, who often rely on digital banking platforms to access funds during financial emergencies, especially if they lack savings.

Payfare’s customers include some of the most recognizable gig-economy platforms such as ride-hailing firms Uber Technologies Inc. and Lyft Inc.

Earlier this year, Payfare announced it was conducting a strategic review in order to explore opportunities for growth, which was a sign that perhaps its business wasn’t going so well.

Still, Fiserv seems to think it can make use of the company’s products. Chief Executive Frank Bisignano said Payfare has built up a reputation as one of the top innovators in payments for gig-economy workers.

Fiserv said the plan is to integrate its expertise in processing, bank ledgers and value-added services with Payfare’s card program management capabilities, white-label consumer applications and microservices-based orchestration layer. In doing this, Fiserv thinks it can strengthen its position in embedded finance, providing its financial services customers with more robust and flexible capabilities in payments and lending.

Payfare founder and CEO Marco Margiotta said joining Fiserv will enable his company to scale and grow its technology and serve much larger organizations in the financial services industry.

Image: Payfare