Canada's TD Bank is selling part of its merchant processing business to Fiserv as part of a wider agreement with the US payments giant.
Under a multi-year strategic management services programme, TD Merchant Solutions will use Fiserv technology, including the Clover point-of-sale system, for its business.
Fiserv is also acquiring a portfolio of approximately 3400 TD merchant relationships with 30,000 locations that will migrate to the US firm's processing system and Clover.
Fiserv says the move deepens its position in Canada, while TD says it will simplify its merchant business and reduce costs over time.
Barbara Hooper, group head, Canadian business banking, TD, says: "This strategic relationship with Fiserv will directly benefit our clients by combining Clover, Fiserv's innovative merchant product offering, with our business banking solutions, providing our merchants with the capability to leverage the latest technology to process payments and grow."
The transaction is expected to close later this year, subject to customary closing conditions.