Jack Henry & Associates ( JKHY Quick Quote JKHY - Free Report) has signed an agreement to take over the digital payments company Payrailz.
Payrailz offers cloud-native, and AI-based consumer and commercial digital payment solutions to banks and credit unions. It also offers advanced capabilities like consumer and commercial bill pay, plus real-time person-to-person, account-to-account, business-to-customer payments.
The acquisition of Payrailz will enable Jack Henry to add the digital payment capabilities of the former to its payment ecosystem. This will add strength to its payment portfolio offerings.
By adding Payrailz’s solutions to its payment ecosystem, JKHY aims to help financial institutions seamlessly cater to the needs of consumer and commercial account holders.
Additionally, Jack Henry will enhance its payments-as-a-service strategy with the recent buyout to support open-banking services and multiple payment channels.
The takeover of Payrailz is expected to be complete on Aug 31, 2022.
Expanding Portfolio Solutions
The acquisition of Payrailz bodes well for Jack Henry’s consistent efforts to expand its portfolio offerings.
Apart from the recent move, Jack Henry Lending launched a powerful digital solution named FactorSoft Web Portal that provides near real-time servicing to lenders anytime and anywhere.
This apart, JKHY released agricultural industry spreading models to aid financial institutions in seamlessly processing agricultural loans.
Jack Henry also introduced SecurePort for banks to help customers access account balances and funds, and protect the same in times of crisis.
Growing Customer Base
Jack Henry’s robust portfolio of solutions is helping it continuously gain momentum among numerous financial institutions.
Recently, JKHY got picked by LINKBANCORP to provide advanced banking services to the latter’s commercial and retail customers.
In addition, Jack Henry’s BusinessManager solution is being used by Great Plains National Bank to help local businesses generate additional revenue sources and survive in the post-pandemic period.
This apart, the Bank of Burlington, RockPoint Bank and Moultrie Bank & Trust selected JKHY’s technology platform to expand the accessibility of their financial services to local communities.
JKHY extended its alliance with Independent Financial. Per the terms of the deal, Independent Financial will leverage Jack Henry’s digital lending platform LoanVantage for automating commercial loans for small and medium-sized businesses.
Jack Henry’s growing momentum among customers will continue to drive its top-line growth in the days ahead.
This will help JKHY win investors’ confidence in the near and the long term.
Shares of Jack Henry have been up 25.3% in the year-to-date period against the
Computer and Technology sector’s decline of 22.6%. Zacks Rank & Stocks to Consider
Currently, Jack Henry carries a Zacks Rank #3 (Hold). Investors interested in the broader Zacks Computer & Technology sector can consider some better-ranked stocks like
Keysight Technologies ( KEYS Quick Quote KEYS - Free Report) , ASE Technology ( ASX Quick Quote ASX - Free Report) and AMETEK ( AME Quick Quote AME - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Keysight Technologies has lost 21.3% in the year-to-date period. KEYS’ long-term earnings growth rate is currently projected at 9.1%.
ASE technology has lost 24.6% in the year-to-date period. The long-term earnings growth rate for ASX is currently projected at 23.1%.
AMETEK has lost 15.1% in the year-to-date period. The long-term earnings growth rate for AME is currently projected at 9.3%.