Credit card processor, merchant acquirer and bank credit card issuer TSYS announced Wednesday (Feb. 7) that JPMorgan will offer the company’s Virtual Payment PresceptSM, a commercial card payable service, to corporations.
According to a press release, TSYS said the Virtual Payment PresceptSM solution enables corporations to generate secure, virtual, single-use account information — and in real time. The deal will enable JPMorgan to broaden its virtual card solution through issuance on both Visa and Mastercard networks.
“TSYS takes pride in being a trusted partner in commercial payments, helping our clients implement a best-in-class payables platform,” said Scot Yarbrough, group executive of commercial services at TSYS, in the press release. “We are thrilled that JPMorgan’s commercial card business is utilizing our solution to continue to grow [its] business by leveraging the latest technologies.”
The Virtual Payment PresceptSM solution reduces risk and makes it easier for both accounts payable and receivable to reconcile transactions. Virtual cards are able to replace main account numbers on physical cards, thus increasing security and providing a fraud-proof method of paying suppliers. Users can also place limits on how each virtual account number can be used when making purchases.
“Virtual cards are a vital component of our clients’ payments strategy and business operations, and this will continue to power our clients’ and suppliers’ growth,” said Naney Pandit, head of commercial card product at JPMorgan.
The collaboration with JPMorgan comes on the heels of a December agreement to acquire payment solutions provider Cayan in a $1.05 billion all-cash deal. The deal is expected to promote modest additions to TSYS’ net revenue growth and adjusted diluted earnings per share (EPS) in the first full year after closing.
Cayan, a portfolio company of Parthenon Capital Partners, provides technology services to more than 70,000 merchants and more than 100 integrated partners in the U.S.
“The acquisition of Cayan strategically complements our merchant goals to become a leading payment solutions provider to small and medium-sized businesses in the U.S.,” said Troy Woods, chairman, president and chief executive officer for TSYS. “TSYS already has tremendous scale and distribution capabilities. The addition of Cayan’s unified commerce solutions puts us in a strong competitive position to jointly offer a broader set of value-add products and services to our partners and merchants.”