Dec 23 (Reuters) - U.S. fintech firm Fiserv ( FI ) will

buy Canada's Payfare ( PYFRF ) in a C$201.5 million ($140

million) deal as it looks to expand payments offerings for

gig-economy workers, the companies said on Monday.

The transaction, expected to close in the first half of

2025, comes months after Payfare ( PYFRF ) began a strategic review of its

business, and values its stock at a 90% premium to last closing

price.

The deal will allow Fiserv ( FI ) to expand its footprint in a

fast-growing market. Gig-economy workers often access funds

provided by such digital banking platforms to tide them over

during unforeseen financial emergencies, especially if they lack

enough savings.

The acquisition could also mark one of the final

undertakings by Fiserv ( FI ) CEO Frank Bisignano, who has been picked

by President-elect Donald Trump to head the Social Security

Administration.

Payfare's ( PYFRF ) partners include some of the most recognizable

gig-economy platforms such as online delivery company DoorDash ( DASH )

and ride-hailing firms Uber ( UBER ) and Lyft ( LYFT ).

The number of transactions processed by fintech providers

that, in partnership with employers, allow employees early

access to their wages grew more than 90% year-over-year in 2022,

according to an estimate by the Consumer Financial Protection

Bureau in July.

Payfare's ( PYFRF ) shares have declined nearly 66% so far this year,

while Fiserv ( FI ) has jumped 55%.

($1 = C$1.4403)