Jack Henry and Associates (NASDAQ:JKHY) entered into an agreement to add the Payrailz digital payment solution to its payments ecosystem.
The acquisition of Payrailz is in support of Jack Henry’s tech strategy. Said strategy includes helping banks and credit unions meet the needs of consumer and commercial account holders. It also reinforces the company’s mission to strengthen connections between people and financial institutions through both tech and services.
“We are excited about the opportunity to add these next-generation solutions to our payments capabilities. Our company is engaged in technology modernization 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 account holders. 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,” said Greg Adelson, president and COO of Jack Henry.
Jack Henry is a financial technology company that connects financial institutions and the people and businesses it serves. It’s an Standard & Poor 500 company that offers banks and credit unions an ecosystem of internally developed modern capabilities as well as the ability to integrate with leading financial technologies. The company has been around for 45 years and has provided technology solutions to give clients what they need to improve, stand out strategically, and compete, while serving the needs of account holders.
Payrailz is based on Glastonbury, Connecticut. It’s a cloud oriented, AI-enabled commercial digital payment and experiences that helps money move around, and banks and credit unions to successfully compete with other big name industry companies.
“We are confident joining Jack Henry is in the best interest of our clients and our associates. As part of Jack Henry, we have the opportunity to leverage its financial strength and stability, extensive operational infrastructure, and industry, payments, and security expertise. Joining Jack Henry also enables us to build on our market reputation and accelerate our vision of providing smarter payment experiences. This acquisition provides significant growth opportunities with frictionless access to Jack Henry’s existing clients and offers our clients peace-of-mind that Jack Henry has a long-term commitment to investing in the Payrailz platform and shares our service culture and standards. We are sincerely excited to join one of the industry’s most respected and successful fintechs,” said Fran Duggan, Payrailz CEO and founder.
There’s a bit more to Jack Henry’s strategy here, though. The acquisition adds to its payments-as-a-service (PaaS) strategy, which includes a commitment to open banking and the ability to allow embedded finance and fintech. Jack Henry supports the demand for PaaS with a virtual payments hub that complements this hub with capabilities for consumer and commercial bill pay, real-time person-to-person, account-to-account, business-to-customer payments and even more.
The acquisition is expected to close August 31, 2022.