B2B Payments

Payrailz Brings Banking As A Service To Credit Unions

credit union

FinTech startups Constellation Digital Partners and Payrailz are teaming up to create a joint solution to help credit unions offer an enhanced online banking experience, the firms announced on Tuesday (Feb. 4).

Constellation offers a platform that assists credit unions and FinTech developers to work together. Payrailz, a digital payments firm, offers secure payments. With this partnership, the two firms will create tools and services to help credit unions provide the digital banking experience and solutions for members. Credit unions have had to compete with traditional financial institutions that had an easier time tapping evolving technologies, the companies noted. 

The partnership is also a waypost for Constellation as its first enterprise-level deal, which enables developers to offer expansive platform-oriented solutions for credit unions.

“Credit unions collaborate all the time and they expect vendors to collaborate as well. This partnership is a great example of that,” said Fran Duggan, chief executive officer and founder of Payrailz. “Similar to Constellation, our mission at Payrailz is to help credit unions leapfrog current offerings and add value to the overall experience for their members. Payrailz is engineering solutions to address the needs of an emerging ‘do it for me’ culture by reimaging the payments experience. Partnering with Constellation further delivers on this promise.”

The Constellation Digital Platform is the first open development solution to offer integrated financial services to credit unions, according to the release. Constellation has the means for securing services with access to the core and delivering solutions. 

The platform allows anyone to create services, which means credit unions can move beyond one firm. It also lets credit unions devise their own solutions or buy services from anyone in the Constellation ecosystem. 

“Credit unions come to Constellation and Payrailz because they want to keep members happy. Happy members leads to higher retention rates,” said Constellation CEO and Founder Kris Kovacs. “Constellation provides a new way for credit unions to deliver on [their] long-standing mission of making members’ lives easier. Our partnership with Payrailz is a good use case for that.”

Payrailz said it thinks the industry is primed for a “do it for me” solution for payments and has created a dynamic mechanism powered by predictive smart technology that makes payments an afterthought for members.



B2B APIs aren’t just for large enterprises anymore — middle-market firms and SMBs now realize their potential for enabling low-cost access to real-time payments and account data. But those capabilities are only the tip of the API iceberg, says HSBC global head of liquidity and cash management Diane Reyes. In this month’s B2B API Tracker, Reyes explains how the next wave of banking APIs could fight payments fraud and proactively alert middle-market treasurers to investment opportunities.