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Core technology provider Jack Henry & Assoc. plans to acquire Connecticut-based Payrailz, a digital payments company that offers a person-to-person payments platform used by several Massachusetts lenders.
Jack Henry said in a statement yesterday that it has agreed to acquire the Glastonbury, Connecticut-based company and expects the transaction to close on Aug. 31. Financial details and terms of the purchase agreement were not disclosed.
Payrailz provides cloud-native, API-first, AI-enabled consumer and commercial digital payment solutions, the statement said. Jack Henry said it would add Payrailz’s digital payment capabilities, including real-time P2P services, to Jack Henry’s payments ecosystem.
“We are excited about the opportunity to add these next-generation solutions to our payments capabilities,” Greg Adelson, Jack Henry’s president and chief operating officer, said in the statement. “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 accountholders.”
Jack Henry said acquiring Payrailz was part of its strategy to help banks and credit unions meet the evolving needs of consumer and commercial customers.
“This acquisition enhances Jack Henry’s payments-as-a-service [PaaS] strategy, which is a natural extension of its commitment to open banking and the ability to enable embedded finance and embedded fintech,” the statement said. “Jack Henry supports the growing demand for PaaS with a virtual payments hub that consolidates money-moving solutions and supports numerous payment channels and types.”
Jack Henry added that Payrailz’s services complement its hub, including through consumer and commercial bill pay, P2P, account-to-account payments, and business-to-customer payments.
“We are confident joining Jack Henry is in the best interest of our clients and our associates,” Fran Duggan, founder and CEO of Payrailz, said in the statement. “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.”
