Jack Henry Launches High-Speed Bill Pay Feature

Core data processing and technology company Jack Henry & Associates is doubling down on bill pay.

The Monett, Mo.-based firm’s Payment Solutions group announced this week that its consumer bill pay product now allows credit unions and other financial institutions to provide near-real-time card-funded bill payments using credit and debit cards. The feature, called iPay CardPay, will help meet consumer demand for instant “pay now” gratification and their desire to optimize card rewards, according to the company.

“With so much competition in payments, financial institutions need to help ensure that basic, expected offerings like bill pay are elevated to match consumer preferences and interests,” Jack Henry iPay Solutions, Group President, Tede Forman said. “Centralizing card-funded payment activity, hosted by the financial institution, enhances the traditional bill pay offering while creating new benefits of the service to both the consumer and bank or credit union.”

Ogden, Utah-based Goldenwest Federal Credit Union has already launched the feature, according to Jack Henry & Associates. The credit union, which has $1.7 billion in assets and about 144,000 members, has been offering triple points for card-not-present charges.

“Bill pay is considered one of those sticky services, but in a traditional sense does provide much extra value to the institution offering it. Everyone wants payments to move faster; card-to-card transactions are quick and give users the incentive of rewards,” Goldenwest SVP Louse Hilliard said. “iPay CardPay elevates our bill payment capabilities to be a differentiating service, showing members that we are making payments easier and faster while giving them the opportunity to earn points at the same time. Plus, we’re turning bill pay into a product that can benefit the credit union as a new revenue stream.”

Recent data from electronic payments company ACI Worldwide suggests that bill pay is indeed a growth opportunity for many financial institutions. More than one in five consumers has increased their use of company websites to pay bills in the past year, and about the same number decreased their use of mail and in-person payments, according to the study of more than 3,000 U.S. adult consumers. A full 57% said they now pay their bills via company websites, and 21% paid their bills via mobile apps.

The company, which purchased Western Union’s bill pay business for $750 million, also found that about a third (31%) of the respondents have paid a bill through a financial institution’s website, and 39% of mobile wallet users have paid a bill through a mobile wallet.

Other companies have also launched bill pay products with more customer-friendly features in recent months. Last July, for example, Fiserv rolled out a white-label bill pay product that allows companies to invoice and collect payments from customers via mobile. The feature also let billers send alerts, notifications and payment reminders to customers.

Fort Wayne, Ind.-based Allied Payment Network unveiled new bill pay technology earlier this year as well; it allows members to move money from their accounts directly to billers, and it provides instant confirmation that the bill is paid. The company developed the technology, called Pay Now, with financial services software provider Finastra.