The Royal Bank of Canada (RBC) and Bank of Montreal are considering the sale of their jointly owned payment processing unit, Moneris, which could be valued at up to $2bn, reported Reuters.  

Moneris is the payment processor in Canada, offering a range of payment solutions to approximately 325,000 merchant locations across the country. 

The discussions around the sale are at an early stage, with the banks assessing interest in the joint venture.  

PJT Partners, a boutique investment bank, along with bankers from RBC Capital Markets and BMO Capital Markets, are providing advisory services for the potential divestiture. 

The venture’s $700m of annual revenue, has led to estimations that its market valuation could be close to $2bn, although the final amount could be marginally lower. 

It is important to note that the sale is not a certainty, the report said. 

Depending on how the process progresses and the level of interest from prospective buyers, the banks may choose to either proceed with the sale or maintain their ownership of Moneris in full or in part, the report added.  

Reuters’ requests for comments from BMO, Moneris, and PJT Partners have not been met with responses, and RBC has not provided a comment on the matter. 

In March, Moneris partnered with payment technology provider Cardstream. This partnership is aimed at enhancing the company’s Payment Facilitation-as-a-Service (PFaaS) platform, which is designed to support the expansion and integrated offerings of its ISV and ISO partners in the Canadian market. 

Last year, Moneris also introduced a new point-of-sale system, Moneris Go Retail POS, targeting small businesses and focusing on streamlining store operations.