Jack Henry launches P2P payments solution

The P2P solution is available either for standalone implementation or as a strategic component of the full Payrailz payments platform.

Jack Henry’s offering operates as the industry’s only financial institution-centric, open-loop, real-time P2P payments solution, providing a flexible and convenient way of sending money to virtually anyone. As opposed to closed-loop solutions, open-loop solutions do not require senders and receivers to be part of the same payment network. 

Using the recipient’s mobile number or email address, one-time and recurring payments can be made with flexible delivery options, split-pay functionality, good funds settlement, and the ability to credit funds to checking and savings accounts, debit cards, and Venmo accounts, with other options in development. 

Additionally, fraud mitigation optimisation is done through means of a multi-layered approach which includes one-time passwords (OTP) and the in-development Fraud Monitor, which is believed to score 100% of P2P payments in real time. The solution, which is API-enabled, can be integrated into existing digital banking platforms. 

With people expecting secure, convenient, and flexible ways when it comes to sending and receiving money, banks and credit unions are enabled to meet those expectations when offering this type of next-generation solution. With the offer of convenience-driven, real-time payments, money can be sent securely to anyone in three clicks, allowing banks and credit unions to remain at the centre of the payment experience, while ultimately reducing payments friction and financial fragmentation. 

Company representatives have stated that, with the demand for P2P payments continuously growing, they believe that the addition of the open-loop Payrailz P2P solution gives their clients and prospects additional, distinct functionality, optionality, and flexibility, while also enabling the company to support near- and long-term digital and payment strategies of banks and credit unions. 

Jack Henry mission and past announcements

Jack Henry is a financial technology company that offers banks and credit unions an ecosystem of internally developed modern capabilities alongside the ability to integrate with fintechs, aiming to strengthen the connection between financial institutions and the people and businesses they serve. As of now, the company has experience in supporting over 400 financial institutions live on the Zelle and RTP networks, with another 156 being in various stages of implementation. 

In August 2022, the company announced the acquisition of Payrailz, adding the company’s digital payment capabilities, such as real-time P2P, Account-to-Account (A2A), Business-to-Customer (B2C) payments, to its ecosystem. The acquisition helped improve Jack Henry’s Payments-as-a-Service (PaaS) strategy and its ability to enable embedded finance and embedded fintech.

In June 2022, the company announced that it started supporting faster payments strategies for financial institutions though its payments hub, JHA PayCenter, that provides a conduit to the faster payments' networks.

Earlier in February 2022, Jack Henry made public a cloud-native technology strategy aimed at helping community and regional financial institutions expedite innovation. The strategy was centring the development of a single Open Banking platform that would enable access to the company’s solutions and third-party fintechs; the initiative built on Jack Henry’s open-API, digital banking platform.