Payments processing company Jack Henry is leveraging its recent acquisition of the Payrailz payments platform with the launch of a standalone person-to-person (P2P) payments solution.
“Operating as the industry’s only financial institution-centric, open-loop, real-time P2P payments solution, Jack Henry’s offering provides a flexible, convenient way to send money to virtually anyone,” the company said in a news release Tuesday (Oct. 25.)
The release notes that, unlike closed-loop solutions, open-loop solutions don’t require senders and receivers to be a part of the same payment network.
The solution lets payers make one-time and recurring payments via the recipient’s mobile number or email address with flexible delivery options, and the ability to credit funds to checking and savings accounts, debit cards, and Venmo accounts, the Montana company said.
“The demand for P2P payments is strong and growing, and offering instant payments has evolved from a competitive distinction into a competitive necessity,” Tede Forman, president of payment solutions at Jack Henry, said in the release.
FinTechs are seeking ways to connect financial institutions and their customers with faster payment options in the face of growing demand, PYMNTS noted in a recent report that included interviews with executives from Jack Henry and Payrailz.
In a recent installment of “The Real-Time Payments Tracker,” PYMNTS pointed out that third-party organizations such as these allow community banks, credit unions and other small or midsized financial institutions to offer competitive payment options by doing the heavy lifting in terms of technology, payment infrastructure and even liquidity management.
“Payrailz attracts clients by offering to let them—and their customers or members—accept or make payments in whatever way works best for them, whether that’s with real-time payments, ACH channels or other options,” Payrailz Vice President of Payment Products Steve Dubner said in an interview with PYMNTS. “However, real-time as the norm is the key driver.”