Fintech company Jack Henry & Associates has reached a definitive deal to purchase US-based Payrailz for an undisclosed sum.
The acquisition is expected to strengthen Jack Henry’s payments portfolio through the addition of Payrailz’s cloud-native, API-based, AI-driven consumer and commercial digital payment tools.
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These tools are designed to help banks and credit unions compete with disruptors.
The deal, scheduled to complete by the end of this month, is part of Jack Henry’s next-generation technology policy that aims to allow banks and credit unions to innovate quickly.
It is also in line with the fintech firm’s goal of reducing the gap between people and financial organisations by using technology.
This transaction expands Jack Henry’s payments-as-a-service (PaaS) approach that focuses on open banking along with the development of embedded finance and fintech capabilities.
The company has a virtual payments hub, which unifies money transfer tools as well as supports various payment types and channels.
Payrailz’s takeover is said to add solutions for consumer and commercial bill pay, real-time person-to-person (P2P), account-to-account (A2A), business-to-customer (B2C) payments and others, thereby complementing this hub.
Jack Henry president and COO Greg Adelson said: “Our company is engaged in technology modernisation that is supporting banks and credit unions with innovative solutions that enable them to respond to business opportunities and challenges, and to improve the financial health of their accountholders.
“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, modernise their existing payment channels, and remain at the centre of their account holders’ payment experiences.”
Last month, Jack Henry announced a partnership with Victor Technologies and MVB Bank to enable quicker payments.
