Mastercard is acquiring Transactis for an undisclosed amount. The deal is expected to boost the company’s effort to launch its Bill Pay Exchange services later this year.
Transacti provides digital bill payment platform to small businesses such as schools and property owners, who often don’t support online bill pay. Company does this through a broad network of bank and non-bank partners.
With the acquisition of Transactis, Mastercard will be able to target people using online bank applications as well as in biller websites for making bill payments.
“We see Transactis as strengthening our support of the bill payments space,” said Colleen Taylor, executive vice president of new payment platforms, North America for Mastercard.
Master Card is of the view that despite huge digital penetration, a significant number of people still pay their bills via paper or cash. With Bill Pay Exchange services, the company is looking to target this segment of customers.
The company informed that its Bill Pay Exchange will be offered to banks and credit unions through a core set of APIs. While some bill pay services only offer card or ACH-based payments, Bill Pay Exchange will provide the choice of all payment types – including real-time payments – through the consumer’s existing online or mobile banking app, said the company.
“Historically, neither the Bank Bill Pay nor Biller Direct models have delivered the ideal experience or the complete solution. We see this as a unique opportunity to bring our complementary technologies together to deliver a better bill pay experience accelerating the migration of paper bill and checks to these online channels,” stated Joe Proto, Transactis CEO.