Jack Henry & Associates has announced the launch of iPay CardPay, which enables its banks and credit unions "to provide near-real-time, card-funded bill payments using credit and debit cards as an alternative funding option," according to a press release.
The iPay CardPay solution enables financial institutions to offer a bill pay experience based on users' preferences, with recent data showing that more than 75 percent of consumers prefer to pay with a debit or credit card. In addition, card-funded payments can increase a financial institution's bill-pay transaction volume, and enable it to generate ongoing non-interest fee income.
With this service, financial institutions can choose to allow only their issued cards to fund the payments or to accept cards from other organizations.
"With so much competition in payments, financial institutions need to help ensure that basic, expected offerings like bill pay are elevated to match consumer preferences and interests. Centralizing card-funded payment activity, hosted by the financial institution, enhances the traditional bill pay offering, while creating new benefits of the service to both the consumer and bank or credit union," said Tede Forman, group president of iPay Solutions at Jack Henry.
According to Louise Hilliard, senior vice president of Utah's Goldenwest Federal Credit Union, the credit union has launched iPay CardPay to its 29,000 bill pay members.
"Bill pay is considered one of those sticky services, but, in a traditional sense, does provide much extra value to the institution offering it. Everyone wants payments to move faster; card-to-card transactions are quick, and give users the incentive of rewards. iPay CardPay elevates our bill payment capabilities to be a differentiating service, showing members that we are making payments easier and faster, while giving them the opportunity to earn points at the same time. Plus, we're turning bill pay into a product that can benefit the credit union as a new revenue stream," she explained.