The iPay Technologies division of Jack Henry and Associates, Inc. (JHA), has reached a business milestone in surpassing one million users of its person-to-person (P2P) electronic payment solution.
The iPay division, which processes payments for financial institutions, 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. The average payment is well in excess of $500. iPay's P2P solution has processed nearly 8,000,000 payments to date.
Currently, 2,346 financial institutions use the company's
P2P service, which represents a large majority of the financial institutions now offering P2P.
"These exchanges are much more meaningful than their perceived small-scale-per-transaction amount," said Bill Ready, president of iPay Technologies. "Financial behaviors have evolved to now dominate a preference for online payment options. Achieving one million P2P users is evidence of the value that electronic payments are finding in consumers' daily lives."
According to Ready, iPay is used for major financial transactions and simple functions, such as splitting the check at lunch. Though P2P payment technology is not new, more financial institutions are now realizing its necessity as part of a comprehensive strategy to maintain growth and profitability.
JHA's iPay has supported P2P payments for more than seven years and is used for account-to-account transfers and expedited payments as well as for standard consumer and small business online bill pay solutions.
JHA strategically introduced its standalone P2P offering, TheWayiPay, in September 2010, recognizing the heightened awareness of the service among consumers. As a time tested product, iPay has gained popularity as well through the flexibility of its P2P technology. iPay can offer a stand-alone 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. Users are directed back to the financial institution's website to support customer loyalty. 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.
"We were an early pioneer in introducing P2P functionality to financial institutions," said Ready. "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."
Jack Henry and Associates Inc., with headquarters in Monett, is a leading provider of computer systems and ATM/debit card/ACH transaction processing services primarily for financial services organizations. Its technology solutions serve more than 11,200 customers nationwide.