Banking technology provider Jack Henry & Associates has entered into a definitive agreement to acquire Payrailz, a cloud-based digital payments platform.
Financial details of the deal were not disclosed, and the acquisition is expected to close on August 31, 2022.
Founded in 2016 in Connecticut, Payrailz offers consumer and commercial digital payment solutions, including bill payment and money transfer solutions, to banks and credit unions.
“Given the importance of modern digital and payments 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 existing payment channels and stay at the center of their account holders’ payment experience,” says Greg Adelson, president and chief operating officer of Jack Henry.
The firm adds that the acquisition will advance its payments-as-a-service strategy as it aims to help banks and credit unions meet the evolving needs of consumer and commercial account holders with capabilities such as real-time personal communications. (P2P), account-to-account (A2A) and business-to-customer (B2C) payments.
Fran Duggan, CEO and founder of Payrailz, says the addition of Jack Henry “enables us to build our reputation in the market and accelerate our vision to deliver smarter payments.”
Jack Henry & Associates currently boasts approximately 8,000 clients, offering banks and credit unions an ecosystem of in-house developed capabilities as well as the ability to integrate with financial technology.