Will Fiserv’s Acquisition of Payfare Boost Embedded Finance?
Financial institutions can unlock a multitude of opportunities by acquiring another organisation.
The global leader in payments and financial services technology, Fiserv, is enhancing its embedded financial capabilities by acquiring the fintech company, Payfare.
By doing so, Fiserv can strengthen its capabilities in workforce payment solutions and embedded finance, diversify its offerings and expand into the new economy market to grow its client base.
Frank Bisignano, Chairman, President and CEO of Fiserv, explains: “Payfare has built a reputation as an innovator in workforce payments for gig-economy companies.”
“Together, we can accelerate the delivery of embedded finance solutions for all of our clients, empowering their next chapter of success. We look forward to welcoming the talented Payfare team to Fiserv.”
Not only will this result in access to new customers, revenue streams and regions and rapid market expansion but it will also enhance its capability by merging expertise, products and innovative technologies.
What are new economy workforces?
New economy workforces describe how globalisation, technological advancements and evolving societal needs are altering the labour landscape.
This workforce often signifies the transition from traditional manufacturing to knowledge and service-based economies with roles in renewable energy, AI development, content creation and digital marketing.
- Digital and tech-driven roles
- Gig and remote work
- Greater emphasis on sustainability and net zero
- Lifelong learning and upskilling
- Diversity & inclusion
- Cross-functional skills
- Increased flexibility
- Technological integration
- Economic inclusion
Meet Payfare
Payfare is a fintech organisation that focuses on workforce payment solutions for modern workforces and gig-economy workers.
It delivers real-time financial solutions that improve security and financial inclusion by partnering with employers, payroll providers and gig platforms.
Payfare strives to offer greater financial flexibility, reduce traditional banking delays and empower workers by providing innovative tools such as payment cards and digital banking apps.
Fiserv’s acquisition of Payfare will mean that the organisation can effectively meet the evolving needs of gig-economy companies and offer a range of services that enhance financial inclusion and result in instant access to earnings for gig-economy workers.
Marco Margiotta, CEO and Founding Partner of Payfare, explains how, “Joining Fiserv is a tremendous opportunity for Payfare,”
“We recognize that Fiserv gives us enhanced scale and technology which better positions us to serve a growing number of large organizations and deliver a modern digital experience.”
What will the deal mean for the fintech industry?
Fiserv’s acquisition of Payfare mirrors the fintech industry’s development to inclusive, digital and integrated financial services.
This acquisition will have a scope of consequences for the fintech industry, including:
- Expansion of embedded finance solutions allows Fiserv to offer a wider range of payment, embedded banking and lending solutions to serve many financial institutions
- A new focus on gig economy and new economy workforces
- Acceleration of digital financial services to meet the fintech industry’s trend toward digital transformation
- Competitive positioning allows Diserv to attract a broader audience through offering a wider range of services
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