Barclays Bank is understood to be in discussions with Brookfield Asset Management about giving up 80% of its merchant acquiring arm.
Barclays said in February that it was exploring a sale or partnership for the merchant acquiring division, which has struggled to remain competitive in the face of increasing competition from the likes of Stripe, Adyen and Dojo.
Discussions with Brookfield are at an early stage, reports Sky News, but it is thought the UK lender is prepared to give away 80% of the business, while retaining a 20% stake.
Valuation has been a sticking point for Barclays, with potential investors baulking about paying good money after bad. In December, the bank wrote down its valuation of the business by £300 million.
A potential deal has also been complicated by the takeover of Barclays partner Takepayments by Global Payments, which could reduce revenues.
While not paying a consideration for the takeover, Brookfield will have to invest substantially in upgrading products and replacing ageing payment systems.
The Canadian asset manager has garnered experience in merchant acquiring following last year's acquisition of Network International.