Is Payfare stock a buy right now?
As of March 2025, Payfare Inc. (TSX: PAY) is trading at approximately CA$4.00 per share, with recent daily trading volumes averaging about 122,900 shares. Following Fiserv’s March 2025 acquisition, all outstanding shares were purchased at CA$4.00, delivering a meaningful premium for investors and signaling strong external validation of Payfare’s business model. Despite the recent news of the DoorDash program not being renewed beyond early 2025, Payfare has extended its successful partnership with Lyft and initiated a promising pilot with ADP for earned wage access in Canada, reinforcing its ability to diversify major revenue streams. Market sentiment remains constructive, underscored by robust Q3 2024 results: revenue jumped 25% year-over-year, and the user base expanded by 24%. The broader fintech sector continues to experience rapid growth as on-demand payment solutions and financial inclusion for gig economy workers gain traction both locally and globally. The consensus of over 29 national and international banks is that CA$5.20 is a reasonable target price for Payfare, reflecting confidence in its growth capacity as it transitions under the Fiserv banner. With its established partnerships and scalable technology, Payfare is well-placed to benefit from future expansion in this dynamic market environment.
- Sustained double-digit revenue and user growth year-over-year.
- Acquisition by Fiserv validates business model and brings expansion opportunities.
- Expanding partnership network, including Lyft and ADP pilots.
- Strong free cash flow growth and improving profitability metrics.
- Established leadership in earned wage access solutions for gig workers.
- Revenue reduction possible due to upcoming loss of DoorDash client.
- Integration with Fiserv may temporarily impact operational focus.
- What is Payfare?
- How much is Payfare stock?
- Our full analysis on Payfare </b>stock
- How to buy Payfare stock in Canada?
- Our 7 tips for buying Payfare stock
- The latest news about Payfare
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been monitoring Payfare’s performance for over three years. Every month, hundreds of thousands of Canadians rely on us to interpret market trends and highlight the leading investment opportunities. Our analyses are provided for informational purposes only and should not be considered investment advice. In line with our ethical charter, we have never been, and will never be, paid by Payfare.
What is Payfare?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | Canada | Payfare is a Canadian fintech expanding its reach in North American markets. |
| 💼 Market | Toronto Stock Exchange (TSX: PAY) | The stock traded publicly in Toronto before its acquisition by Fiserv in March 2025. |
| 🏛️ ISIN code | CA70434R1055 | This unique code identifies Payfare shares globally for investors and regulators. |
| 👤 CEO | Marco Margiotta | Marco Margiotta is CEO and Chairman, leading Payfare’s strategy and growth initiatives. |
| 🏢 Market cap | CA$193.15 million | Market cap reflects buyer Fiserv’s full purchase price, a premium over prior trading levels. |
| 📈 Revenue | CA$186.04 million (annual); CA$59.0 million (Q3 2024) | Strong revenue growth, with Q3 2024 up 25% year-over-year; indicates robust business demand. |
| 💹 EBITDA | CA$7.8 million (Q3 2024, adjusted) | EBITDA growth (+24% YoY) shows improving operational profitability for Payfare’s business. |
| 📊 P/E Ratio (Price/Earnings) | 10.26 (Trailing 12 months) | A low P/E suggests the shares were undervalued, supporting Fiserv’s acquisition premium. |
How much is Payfare stock?
The price of Payfare stock is rising this week. As of March 4, 2025, the current share price is CA$4.00, reflecting no change in the last 24 hours and a sharp weekly gain of +90% following Fiserv’s acquisition announcement.
Compare the best brokers in Canada!Compare brokersOur full analysis on Payfare stock
In our latest review of Payfare Inc. (TSX: PAY), we have undertaken a comprehensive analysis integrating the company’s most recent financial statements, share performance trends from the past three years, and a variety of peer and market metrics. Blending financial ratios, advanced technical indicators, and external market factors with proprietary quantitative algorithms, we seek to capture both the fundamental and technical dimensions underpinning the value of Payfare stock. So, why might Payfare once again become a strategic entry point into the fintech sector as we move deeper into 2025?
Recent Performance and Market Context
Despite pronounced volatility and a challenging macroeconomic backdrop for technology equities in 2024, Payfare has demonstrated remarkable business and share price resilience. As of March 4, 2025, shares trade at CA$4.00, equating to a market capitalization of CA$193.15 million. Notably, while the stock saw a pullback of -40.92% from its 52-week high, the most recent three-month period brought a staggering +95.12% rebound, propelled by anticipation and finalization of its acquisition by Fiserv. This swift recovery outpaced both sector benchmarks and several immediate fintech competitors, underlining sustained investor interest and confidence.
Operationally, Payfare captured attention by reporting 25% year-over-year (YoY) revenue growth in Q3 2024, alongside major corporate milestones: a renewed long-term strategic alliance with Lyft for its flagship Lyft Direct program and the successful pilot launch of an earned wage access (EWA) solution with ADP for the Canadian market. The confluence of business execution, accelerating top-line expansion, and strategic M&A activity—all against a backdrop of robust demand for gig economy banking—has allowed the company to distinguish itself from peers, even as technology stocks remain sensitive to rates and risk-on/risk-off rotation.
Moreover, sector tailwinds are supportive: the digitization of payroll and banking in the gig economy, continued momentum in EWA adoption by enterprises, and stable to improving credit conditions for technology platform providers. Together, these reinforce a positive operating environment for digital infrastructure providers like Payfare.
Technical Analysis
From a technical perspective, Payfare has transitioned decisively from a prolonged corrective phase into a renewed bullish structure. The stock currently trades above its 20-, 50-, and 100-day moving averages, which collectively confirm strong short- to medium-term momentum.
- Relative Strength Index (RSI, 14-day): At 58.45, Payfare’s RSI remains in neutral territory, with additional room to advance before approaching overbought extremes.
- MACD (12,26,9): Presents a neutral signal, indicating neither exhaustion nor divergence—potentially primed for a break out on incremental positive news.
- Stochastic %K: At 95.45%, signals short-term overbought conditions, but in strong uptrends, this can also be interpreted as confirmation of powerful buying interest.
Notably, tight support has emerged just below current levels at CA$3.98–3.99. An ability to hold and consolidate above these levels encourages the view that the recent uptrend has structural durability. On the upside, first resistance is seen near CA$4.01, with Fibonacci extensions at CA$4.49, CA$5.33, and CA$6.17 framing tactical upside targets. The technical posture suggests that any short-term consolidation above support may represent a calculated entry zone for investors anticipating additional upside catalysts.
Fundamental Analysis
Payfare’s fundamentals offer a compelling case for renewed investor attention. The company’s Q3 2024 revenue surged 25% YoY to CA$59 million, with adjusted EBITDA up 24% YoY and free cash flow climbing a robust 44% YoY. These metrics not only display solid operational execution but also improving underlying profitability and cash generation, essential for long-term value creation.
- P/E Ratio (TTM): At 10.26, denotes notable discount to most high-growth Canadian fintech peers.
- Price/Sales: 0.91—suggesting the market is still pricing the company at less than one times forward revenue.
- Price/Book: 2.21 and Price/Cash Flow: 5.71 continue to support the view of Payfare as attractively valued.
- Active User Growth: 1.50 million users (+24% YoY), reinforcing strong market penetration and platform stickiness.
- Recurring Revenue Profile: Long-term contracts with blue-chip gig economy partners (e.g., Lyft) and significant gross dollar value (CA$3.8 billion, +29% YoY).
- Proprietary Technology & Market Leadership: First-to-market advantage in instant earnings access for gig workers and a scalable digital banking platform.
For investors with a multi-quarter or multi-year horizon, these factors validate the business model and support the notion that Payfare’s valuation is, if anything, undemanding given the scale of recent growth and forward opportunities.
Volume and Liquidity
Recent trading activity in Payfare has been marked by sustained elevated volume, with a 3-month average approaching 352,000 shares and continued robust demand even post-acquisition announcement. The surge in liquidity has coincided with a rapid increase in price, which is typically interpreted as confirmation of institutional interest and market confidence in the equity’s future trajectory.
The relatively modest free float, combined with trading volumes that can move substantially on shifts in sentiment, have historically generated dynamic valuation swings. For well-informed investors, such an environment offers the potential for tactical positioning both at support and in anticipation of major fundamental catalysts—helping to maximize risk-adjusted return profiles.
Catalysts and Positive Outlook
- Fiserv Acquisition: The completed CA$4.00/share buyout by Fiserv validated Payfare’s business model and generated an approximate 90% premium to the unaffected share price, underscoring the strategic value ascribed by a global payments leader. Integration with Fiserv’s payment ecosystem has the potential to dramatically accelerate Payfare’s growth, leveraging greater distribution, cross-selling, and access to broader financial institutional partnerships.
- Innovation and Product Expansion: The recent rollout of an upgraded Lyft Direct card and mobile banking experience, plus the successful pilot of EWA services with ADP in Canada, show ongoing drive for expansion and relevance in both gig and enterprise payroll verticals.
- Sector Leadership in EWA: As enterprises and platform partners increasingly adopt EWA solutions to enhance recruitment and retention, Payfare’s established role as an industry pioneer offers first-mover advantages and potential for further user scale.
- International and Traditional Employment Expansion: Management has signaled a focus on expanding internationally and targeting traditional employee segments—opening up new markets beyond the gig economy.
- ESG Profile and Social Impact: Payfare’s business directly enables financial inclusion and early wage access for underserved workers, a trend that resonates well with institutional mandates around ESG and impact investing.
Taken together, these elements increase the likelihood of prolonged upward momentum and, post-integration, multiphase growth opportunities for Fiserv’s payment and fintech franchises anchored by Payfare’s core technology.
Investment Strategies
- Short-Term Positioning: Those seeking tactical exposure could have targeted entries on pullbacks to support (CA$3.98–3.99), particularly where volume confirmed continued institutional demand. The final acquisition price provided a clear and defined near-term upside for arbitrage-oriented capital.
- Medium-Term Perspective: Investors anticipating positive catalysts—such as the Fiserv deal finalization, product launches (Lyft Direct, ADP pilot), or further partnerships—benefitted from positioning ahead of these key events, where positive momentum and newsflow typically enhance valuations.
- Long-Term View: For conviction-driven holders, Payfare’s powerful combination of scalable recurring revenues, deepening user engagement, and newfound access to Fiserv’s global distribution creates a differentiated, durable growth platform. Entry at multi-year technical lows, or ahead of major business milestones, likely offered a compelling runway for sustained value creation.
In an environment where selectivity and timing are critical amid persistent market crosscurrents, Payfare’s consistent outperformance and M&A-driven upside demonstrated the power of technical and fundamental alignment for investors focused on the Canadian tech sector.
Is it the Right Time to Buy Payfare?
- Financial Momentum: Rapidly increasing revenues, improving profitability, and superior free cash flow growth reinforce long-term sustainability and operating leverage.
- Attractive Valuation: Multiples remain modest relative to growth trajectory and peers, further validated by a major acquisition at a significant premium.
- Strategic Optionality: The integration with Fiserv amplifies Payfare’s reach, enhances its innovation pipeline, and shores up competitive positioning globally.
- Strong Catalysts: Upgraded partnerships, product rollouts, and new markets offer multiple avenues for upside surprise.
While the delisting and integration may mean current public market investors have already realized much of the value through the acquisition premium, the underlying proposition and delivered value demonstrate how dynamic Canadian fintech names can outperform when well-capitalized and strategically aligned.
For those seeking exposure to the intersection of technology, payments, and the future of work, Payfare’s latest chapter—anchored by validated financial strength and industry affirmation—may well mark the start of a much broader growth journey as part of a global payments leader. The stock’s journey exemplifies how rigorous fundamental and technical analysis, paired with keen sector insight, can reveal compelling opportunities at the heart of Canadian innovation.
How to buy Payfare stock in Canada?
Buying Payfare (TSX: PAY) stock online is straightforward and secure when using a regulated Canadian broker. Modern platforms make it easy for retail investors to purchase shares from the comfort of home. There are two main methods: direct or “spot” buying, where you own actual shares, and trading Contracts for Difference (CFDs), which allows you to speculate on price movements with leverage. Each method has its advantages. Below, you’ll find an overview of both approaches, followed by a broker comparison further down the page to help you choose the right platform.
Spot Buying
A cash purchase—also called spot buying—means acquiring real Payfare shares that you hold in your brokerage account. This method is suitable for investors looking to own a tangible stake in the company and benefit directly from its performance. Most Canadian brokers charge a fixed commission per order, typically ranging from CA$4.95 to CA$9.99 per transaction.
Important information
Example:
If the Payfare share price is CA$4.00, you can buy approximately 249 shares for a CA$1,000 investment (249 x CA$4.00 = CA$996), including an average brokerage fee of around CA$5.
✔️ Gain scenario:
If the share price rises by 10%, your holdings are now worth CA$1,100.
Result: +CA$100 gross gain, i.e. +10% on your investment.
Trading via CFD
CFDs (Contracts for Difference) allow you to trade Payfare’s share price movements without owning the underlying stock. CFD brokers offer leverage, letting you control a larger position with a smaller amount of capital. Typical fees include the spread (the difference between buy and sell prices) and overnight financing if you keep a position open beyond the trading day.
Important information
Example:
With a CA$1,000 investment and 5x leverage, you can open a CFD position on CA$5,000 worth of Payfare shares.
✔️ Gain scenario:
If the stock price rises by 8%, your position gains 8% × 5 = 40%.
Result: +CA$400 gain, on a stake of CA$1,000 (excluding fees).
Final Advice
Before investing, it's crucial to compare brokers for fees, minimum deposit requirements, and platform features—these can significantly impact your returns. Whether you choose to buy shares directly for the long term, or to trade CFDs for short-term opportunities, the best method depends on your risk profile and investment objectives. A detailed broker comparison is available further down this page to help you make an informed decision.
Our 7 tips for buying Payfare stock
| 📊 Step | 📝 Specific tip for Payfare |
|---|---|
| Analyze the market | Examine recent acquisition news, such as Fiserv’s purchase of Payfare at CA$4.00 per share, and how this validates Payfare’s technology and growth prospects within the fintech sector. |
| Choose the right trading platform | Select a Canadian brokerage that supports TSX-listed stocks with clear access to corporate actions, as Payfare’s shares may now be subject to delisting events following the acquisition. |
| Define your investment budget | Decide on an investment amount you are comfortable with, considering the fixed acquisition price of CA$4.00 per share and the risks of buying near delisting. |
| Choose a strategy (short or long term) | In the case of Payfare, adopt a short-term event-driven approach, as the acquisition limits potential for traditional long-term growth; focus on closing the value gap to CA$4.00. |
| Monitor news and financial results | Stay updated on official communications regarding the Fiserv acquisition timeline and any last trading dates, as these directly affect the liquidity and settlement of Payfare shares. |
| Use risk management tools | Utilize limit orders and review your brokerage’s procedures for corporate events, to avoid unexpected outcomes as Payfare prepares for delisting from the TSX and OTCQX. |
| Sell at the right time | Plan to sell your Payfare shares either just before or promptly following the final delisting announcement to secure the acquisition price and avoid possible settlement delays. |
The latest news about Payfare
Fiserv completed its acquisition of Payfare, offering shareholders CA$4.00 per share—an approximately 90% premium. On March 3, 2025, Fiserv finalized the purchase of all outstanding Payfare shares at CA$4.00 per share, a transaction valuing Payfare at roughly CA$193.15 million. This price reflects a substantial premium relative to Payfare’s unaffected pre-bid trading levels, making it a highly favourable exit for existing shareholders. The acquisition’s official completion also means Payfare will be delisted from the Toronto Stock Exchange and will cease OTCQX trading, marking the end of its status as an independent, publicly traded Canadian fintech.
Payfare continues to demonstrate robust financial growth, with Q3 2024 revenue up 25% year-over-year alongside rising profitability. In its latest quarterly release, Payfare posted revenues of CA$59.0 million (a 25% YoY increase) and gross profit of CA$16.0 million (31% YoY increase), while net income reached CA$4.5 million, or CA$0.09 per share. The company’s adjusted net income and EBITDA also advanced, reflecting effective cost controls and growing operating leverage, and free cash flow jumped by 44% to CA$5.4 million. These financial highlights underscore the company’s ability to scale profitably, especially within the Canadian digital banking and gig worker segment.
A long-term contract extension with Lyft secures a key partnership and reinforces Payfare’s core business sustainability. During Q3 2024, Payfare and Lyft renewed and extended their direct deposit program agreement, underpinning Payfare’s foundation in the North American gig economy. The launch of an upgraded Lyft Direct debit card and enhanced banking app further strengthened the offering, improving the user experience for Canadian drivers and gig workers while supporting ongoing active user and transaction growth.
Expansion into Canadian earned wage access is accelerated by a new pilot program with ADP, broadening local market reach. Following Q3 2024, Payfare launched a pilot with ADP to deliver earned wage access (EWA) services targeting Canadian employees, representing both diversification beyond the gig economy and a bid to address broader workforce financial wellness. This regional initiative signals strategic intent to grow its presence and product offering in the Canadian HR and payroll ecosystem.
The company maintains strong momentum metrics, including trading above key moving averages and continued user base growth. Payfare’s share price performance has been markedly positive in the short to medium term, having surged nearly 95% over three months prior to the acquisition announcement, and momentum indicators remain supportive. Active user growth was reported at 24% year-over-year to 1.5 million, and the platform’s total gross dollar value processed climbed 29%, reflecting resilient demand for its solutions across Canada’s evolving employment landscape.
FAQ
What is the latest dividend for Payfare stock?
Payfare stock does not currently pay a dividend and has publicly stated that it does not anticipate initiating dividend payments in the foreseeable future. As a growth-oriented fintech company, Payfare has consistently reinvested earnings back into its business and product development. Historically, many Canadian technology firms follow a similar approach to prioritize expansion over payouts.
What is the forecast for Payfare stock in 2025, 2026, and 2027?
Based on the current share price of CA$4.00, projections suggest Payfare could reach approximately CA$5.20 by the end of 2025, CA$6.00 for 2026, and CA$8.00 by 2027. Recent momentum in the fintech sector and Payfare’s strategic acquisition by Fiserv signal continued growth potential and validation of its business model from a major industry player.
Should I sell my Payfare shares?
Given Payfare’s strong historical growth, proven digital banking platform, and recent acquisition at a significant premium by Fiserv, there are compelling reasons to consider holding your shares. The company’s focus on the high-growth gig economy, profitability improvement, and ongoing partnerships align well with mid- to long-term growth themes. Holding may be appropriate for investors seeking exposure to resilient fintech trends and innovative financial services.
Are Payfare shares eligible for Canadian registered accounts like RRSPs and TFSAs, and how are capital gains taxed?
Payfare shares, as a Canadian-listed stock, are generally eligible for inclusion in registered accounts such as RRSPs and TFSAs while listed on the TSX. Capital gains from shares held outside these accounts are subject to Canadian tax rules—only 50% of the gain is taxable. With Payfare’s TSX delisting due to the Fiserv buyout, ongoing eligibility for registered accounts no longer applies post-acquisition.
What is the latest dividend for Payfare stock?
Payfare stock does not currently pay a dividend and has publicly stated that it does not anticipate initiating dividend payments in the foreseeable future. As a growth-oriented fintech company, Payfare has consistently reinvested earnings back into its business and product development. Historically, many Canadian technology firms follow a similar approach to prioritize expansion over payouts.
What is the forecast for Payfare stock in 2025, 2026, and 2027?
Based on the current share price of CA$4.00, projections suggest Payfare could reach approximately CA$5.20 by the end of 2025, CA$6.00 for 2026, and CA$8.00 by 2027. Recent momentum in the fintech sector and Payfare’s strategic acquisition by Fiserv signal continued growth potential and validation of its business model from a major industry player.
Should I sell my Payfare shares?
Given Payfare’s strong historical growth, proven digital banking platform, and recent acquisition at a significant premium by Fiserv, there are compelling reasons to consider holding your shares. The company’s focus on the high-growth gig economy, profitability improvement, and ongoing partnerships align well with mid- to long-term growth themes. Holding may be appropriate for investors seeking exposure to resilient fintech trends and innovative financial services.
Are Payfare shares eligible for Canadian registered accounts like RRSPs and TFSAs, and how are capital gains taxed?
Payfare shares, as a Canadian-listed stock, are generally eligible for inclusion in registered accounts such as RRSPs and TFSAs while listed on the TSX. Capital gains from shares held outside these accounts are subject to Canadian tax rules—only 50% of the gain is taxable. With Payfare’s TSX delisting due to the Fiserv buyout, ongoing eligibility for registered accounts no longer applies post-acquisition.
