- Jack Henry has acquired payments-as-a-service startup Payrailz.
- Jack Henry expects the acquisition to enhance its payments-as-a-service strategy and offer its 8,000 customers the ability to enable embedded financing.
- Financial details were not disclosed.
Major banking provider Jack Henry & Associates there is agree to acquire digital payments startup Payrailz. Financial details of the acquisition, which is expected to close at the end of this month, were not disclosed.
Jack Henry expects the acquisition to support banks and credit unions by enhancing its payments-as-a-service (PaaS) strategy and offering its 8,000 customers the ability to enable embedded financing. Jack Henry currently has a virtual payment center that consolidates money transfer tools that support multiple channels and payment types. Payrailz’s technology complements this hub by adding consumer and merchant bill payment; real-time person-to-person (P2P), account-to-account (A2A), business-to-customer (B2C) payments; and more.
“We are excited about the opportunity to add these next-generation solutions to our payments capabilities,” said Jack Henry President and COO Greg Adelson. “Our company is engaged in technology modernization that supports banks and credit unions with innovative solutions that enable them to meet business opportunities and challenges and improve the financial health of their account holders. Recognizing the importance of modern digital and payment strategies for financial institutions, we plan to acquire Payrailz as a strategic addition to our payments ecosystem, enabling our customers to simplify payment complexity, modernize their existing payment channels and remain at the center of customer experiences. their account holders with the payments.’
Payrailz’s consumer and commercial digital payment solutions help banks compete with third-party players with PaaS offerings. The company was founded in 2016 and has since raised $24 million. Earlier this year Payrailz integrated with Q2’s digital banking platform to enable Q2’s customers to provide P2P payment services.
Founded in 1976, Jack Henry most recently presented at FinovateFall 2015, where the company demonstrated the Banno solution after acquiring Banno in 2014. Jack Henry’s other fintech acquisitions include Geezeo, iPay Technologies and Stackfolio.