Saying it’s adding more solutions to help banks and credit unions compete with industry disruptors, Jack Henry & Associates announced that it will acquire digital payment platform Payrailz.
This acquisition will enhance Jack Henry’s payments-as-a-service (PaaS) strategy by adding the Payrailz consumer and commercial bill pay, real-time person-to-person, account-to-account and business-to-customer payments to Jack Henry’s virtual payments hub, according to the Tuesday (Aug. 9) press release.
“Considering the importance of modern digital and payments strategies to financial institutions, we plan to acquire Payrailz as a strategic addition to our payments ecosystem, which enables our clients to simplify the complexity of payments, modernize their existing payment channels and remain at the center of their account holders’ payment experiences,” Jack Henry President and Chief Operating Officer Greg Adelson said in the press release.
FinTechs are looking to connect financial institutions and their customers with faster payment options as demand grows, PYMNTS noted in a recent report that included interviews with executives of Jack Henry & Associates and Payrailz.
In the latest edition of “The Real-Time Payments Tracker,” PYMNTS noted that third-party organizations like these enable community banks, credit unions and other small or midsized financial institutions to offer competitive payment options by doing the heavy lifting in terms of technology, payment infrastructure and even liquidity management.
“Payrailz attracts clients by offering to let them—and their customers or members—accept or make payments in whatever way works best for them, whether that’s with real-time payments, ACH channels or other options,” Payrailz Vice President of Payment Products Steve Dubner told PYMNTS. “However, real-time as the norm is the key driver.”
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