Jack Henry & Associates (NASDAQ:JKHY), a leading provider of computer systems and electronic payment solutions primarily for financial services organizations, today announced that its iPay Technologies division has surpassed one million users of its person-to-person (P2P) electronic payment solution.
There are currently 2,346 financial institutions using the company's P2P service, which represents a large majority of the financial institutions now offering P2P.
iPay had more than 600,000 P2P payments processed by its platform during the first quarter of 2011 alone, which represents nearly twice the number of P2P transactions processed during the previous quarter, with the average payment being well in excess of $500. iPay's P2P solution has processed nearly 8 million payments to-date.
According to Bill Ready, president of iPay Technologies, "These exchanges are much more meaningful than their perceived small-scale per transaction amount such as reimbursement for splitting the check at lunch. Financial behaviors have evolved to now dominate a preference for online payment options, and achieving one million P2P users is evidence of the value that electronic payments are finding in consumers' daily lives. And though P2P payment technology is anything but new, more financial institutions are now realizing its necessity as part of a comprehensive strategy to maintain growth and profitability."
iPay has supported P2P payment functionality for more than seven years and is a seasoned provider in account-to-account (A2A) transfers and expedited payments as well, integrating these services into its standard consumer and small business online bill pay solutions.
Angie Matthews, AVP and manager of online banking at Columbia Bank, said, "iPay has been Columbia Bank's bill pay provider for six years, supporting us with advanced bill pay options including P2P functionality. Our customers appreciate the simplicity and ease of paying their bills online, and also having access to a platform that is inclusive of multiple electronic payment services. iPay understands what consumers want from their financial institution and being early to market with a P2P offering is evident of that foresight."
Recognizing the heightened awareness of this service among consumers, the company strategically introduced its standalone P2P offering, TheWayiPayTM, in September 2010. Leveraging the market maturity and optimum flexibility of its P2P technology, iPay can offer a standalone product that operates independently of its online bill pay to any financial institution.
TheWayiPay ensures that each bank or credit union's brand is emphasized in the delivery of its P2P platform and that end users are directed back to the financial institution's website. This electronic payment service is accessible through financial institutions' websites and leverages the same secure processing as online banking transactions. TheWayiPay allows anyone in the U.S. with a bank account to send and receive money using only the recipient's name and email address. The money is deducted from the sender's account and deposited directly in the recipient's account in one to three business days with payment confirmations sent to the recipient's email address.
Ready added, "We were an early pioneer in introducing P2P functionality to financial institutions. By packaging this innovation with other online services, such as online banking and bill pay, we offer a convenient payment alternative that also simplifies financial management the way in which consumers desire. Providing this service as a standalone has been paramount to our continued emergence as a recognized leader in P2P solutions. We see our experience and ongoing innovation as foundational to our continued market share growth in both client implementations and end users."