Shift4 announced its purchase of Paramount Commerce, a Toronto-based pay-by-bank firm. Terms of the deal, expected to close in the next few weeks, were not disclosed.
Paramount enables pay-by-bank deposits and payouts in Canada for companies that include the sports betting sites DraftKings and FanDuel, and Canadian telecommunications firm Telus, Shift4 said in its third-quarter earnings presentation.
"Bank rails carry the lion's share of payment volumes in many markets, and account-to-account fits transactions where cards run into limits," CEO Taylor Lauber said on a conference call with analysts. "This is a kind of normal-course, tuck-in (purchase) that fits right into the Shift4 playbook."
The announcement came alongside Shift4's third-quarter results, in which the company cut its profit outlook and gross revenue target for the full year, with weak conditions expected to persist into 2027. Lauber wrote in a shareholder letter that Shift4 is navigating "a more challenging backdrop than we've seen in recent years."
The company has faced travel weakness in Europe and reduced dining in the U.S. Fallout from the Iran conflict has affected Shift4 in the European retail market, where it operates with Global Blue, the Swiss payments technology firm it acquired last year for $2.5 billion, including taking on $1 billion in debt.