Fiserv Finalizes Significant Agreement with TD Bank to Boost Involvement in Canada
TD Bank Group, Canada's most valuable brand in 2025, has announced a significant strategic move that will reshape its approach to merchant services and customer experience. The bank has agreed to sell a portion of TD Merchant Solutions' (TDMS) Canadian business to Fiserv, a leading provider of payment and financial services technology.
The deal, which is expected to close later this year, subject to customary closing conditions, includes the sale of approximately 3,400 TD merchant group contracts comprising 30,000 merchant locations. These acquired relationships and locations will migrate to Fiserv's processing system and Clover point-of-sale (POS) system and platform.
According to Takis Georgakopoulos, Chief Operating Officer at Fiserv, this partnership will expand Clover's reach and increase their commitment to Canada. "We are pleased to partner with TD and help their merchants access our advanced, all-in-one payments platform," he said.
The strategic partnership will directly benefit TD's clients by combining Clover with TD's business banking solutions. TD merchants will now have access to state-of-the-art payment processing and business management tools without TD having to maintain the underlying merchant processing infrastructure itself.
The partnership indirectly supports TD's broader innovation strategy, including initiatives such as TD AI Prism (an AI-powered analytics tool for banking insights) and TD Invent (its innovation lab and ecosystem for fostering fintech partnerships and digital transformation). By outsourcing merchant payment processing to a specialist like Fiserv, TD can better support advanced innovation platforms and AI integration in other segments of its business.
Barbara Hooper, Head of Business Banking for TD Bank Group in Canada, commented on the strategic relationship with Fiserv. "This partnership reinforces our strong relationship with Fiserv and underscores our shared commitment to delivering value to clients," she said.
Fiserv has signed a multi-year deal with TD Bank Group, but the financial terms of the transaction were not disclosed. The COO also mentioned that the agreement reinforces their strong relationship with TD and underscores their shared commitment to delivering value to clients.
TD AI Prism is part of TD Invent, the bank's strategic innovation initiative. The bank recently unveiled TD AI Prism, a proprietary artificial intelligence foundation model built in-house. By focusing on innovation and AI, TD aims to improve customer service and operational efficiency, ultimately reshaping how it predicts customer needs and delivers personalized experiences.
Fiserv trades publicly under the symbol FI. The acquisition represents a long-term strategic move aligning with TD's digital transformation priorities and enhancing its merchant client offering through partnership rather than full ownership of infrastructure.
In summary, the key impacts on TD Bank Group’s strategy are:
- Operational Simplification and Cost Reduction: By selling part of TDMS’s merchant processing operations to Fiserv and adopting Clover’s technology, TD reduces complexity and operational burdens, improving financial outcomes.
- Enhanced Customer Solutions: TD merchants benefit from cutting-edge payment and business management technology without disruption, supporting TD’s goal to help businesses succeed through digital innovation.
- Focus on Innovation and AI: With merchant services streamlined, TD can better support initiatives like TD AI Prism and TD Invent by reallocating focus and investment towards AI-powered analytics and innovation labs, thereby strengthening TD’s position as a technology-forward bank.
This partnership is a testament to TD's commitment to delivering value to its clients through strategic partnerships and innovative solutions. As the bank continues to grow and evolve, it will undoubtedly continue to seek out opportunities to improve its services and enhance the customer experience.
- TD Bank Group's deal with Fiserv, as part of TD's digital transformation priorities, will not only provide TD merchants with advanced, all-in-one payments and business management tools but also free up resources for TD to focus more on innovation and AI initiatives, such as TD AI Prism and TD Invent.
- The strategic partnership between TD Bank Group and Fiserv will indirectly support TD's broader innovation strategy by allowing TD to outsource merchant payment processing to a specialist like Fiserv, enabling the bank to better support advanced innovation platforms and AI integration in other segments of its business.
