Jack Henry & Associates, Inc. announced today that it has entered into a definitive agreement to acquire Payrailz, adding the company’s next-generation digital payment capabilities, including real-time person-to-person (P2P) payments, to Jack Henry’s payments ecosystem.

Payrailz, a cloud-native, API-first, AI-enabled provider of consumer and commercial digital payment solutions and experiences, is based in Glastonbury, Connecticut. By enabling money to be moved when it is needed, Payrailz helps banks and credit unions successfully compete with industry disruptors.

“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 centre of their account holders’ payment experiences.”

                                                                 Greg Adelson, President & COO of Jack Henry.

Payrailz’s acquisition supports Jack Henry’s next-generation technology strategy, which enables financial institutions to develop more quickly and cater to the changing needs of customers with both consumer and business accounts. The company’s goal of improving relationships between people and financial institutions through technology and services that lower obstacles to financial health are furthered by this acquisition.

This acquisition strengthens Jack Henry’s payments-as-a-service (PaaS) strategy, which is an extension of the company’s dedication to open banking and capacity to support embedded fintech and finance. With a virtual payments center that unifies money-moving solutions and supports a wide range of payment channels and types, Jack Henry helps to meet the rising need for PaaS. With next-generation features for consumer and business bill pay, real-time person-to-person (P2P), account-to-account (A2A), and business-to-customer (B2C) payments, among other things, Payrailz strategically complements this hub.

“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.”

                                                                             Fran Duggan, Payrailz CEO and Founder. 

Financial details and terms of the definitive purchase agreement were not disclosed. The acquisition is expected to close on August 31, 2022.