Advertisement
UK markets closed

  • FTSE 100

    8,139.83
    +60.97 (+0.75%)
     

  • FTSE 250

    19,824.16
    +222.18 (+1.13%)
     

  • AIM

    755.28
    +2.16 (+0.29%)
     

  • GBP/EUR

    1.1679
    +0.0022 (+0.19%)
     

  • GBP/USD

    1.2494
    -0.0017 (-0.13%)
     

  • Bitcoin GBP

    50,366.27
    -1,074.71 (-2.09%)
     

  • CMC Crypto 200

    1,304.48
    -92.06 (-6.59%)
     

  • S&P 500

    5,099.96
    +51.54 (+1.02%)
     

  • DOW

    38,239.66
    +153.86 (+0.40%)
     

  • CRUDE OIL

    83.66
    +0.09 (+0.11%)
     

  • GOLD FUTURES

    2,349.60
    +7.10 (+0.30%)
     

  • NIKKEI 225

    37,934.76
    +306.28 (+0.81%)
     

  • HANG SENG

    17,651.15
    +366.61 (+2.12%)
     

  • DAX

    18,161.01
    +243.73 (+1.36%)
     

  • CAC 40

    8,088.24
    +71.59 (+0.89%)
     

Jack Henry's (JKHY) Payrailz Buyout to Boost Payment Portfolio

Zacks Equity Research
·3-min read

Jack Henry & Associates JKHY 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.

ADVERTISEMENT

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.

Jack Henry & Associates, Inc. Price and Consensus

Jack Henry & Associates, Inc. Price and Consensus
Jack Henry & Associates, Inc. Price and Consensus

Jack Henry & Associates, Inc. price-consensus-chart | Jack Henry & Associates, Inc. Quote

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, ASE Technology ASX and AMETEK AME, 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%.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
AMETEK, Inc. (AME) : Free Stock Analysis Report
 
Jack Henry & Associates, Inc. (JKHY) : Free Stock Analysis Report
 
ASE Technology Holding Co., Ltd. (ASX) : Free Stock Analysis Report
 
Keysight Technologies Inc. (KEYS) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research