Mastercard announced it has entered into an agreement to acquire Transactis, a platform that helps businesses deliver bills and receive payments.
Last year, Mastercard announced a bill-pay product, Bill Pay Exchange, that gives customers a range of payment types, including real-time payments, through their existing online or mobile banking apps. The company says the product, expected to launch later this year, will allow customers to pay telecom bills, utility bills, rent, credit card bills, mortgages, and other personal bills.
The Transactis technology helps companies improve their customers’ bill payment experience.
“We see Transactis as strengthening our support of the bill payments space,” Colleen Taylor, executive vice president of new payment platforms for Mastercard North America, said. “Transactis’ technical and commercial know-how, combined with our reach and comprehensive payment options, will greatly simplify the entire process. We’ll be able to deliver a better real-time consumer experience, from sign-up to viewing and paying bills, leveraging the investments that have been made in the core infrastructure.”
The acquisition of Transactis will allow Mastercard to address bill payment needs in online banking applications as well as in biller websites with enhanced end-user interfaces, expanded payment options, and digital bill presentment capabilities. Bill Pay Exchange will be offered to banks and credit unions through a core set of APIs, enabling them to provide the service to their customers through one easy interaction.
Transactis Chief Executive Officer Joe Proto said: “Historically, neither the bank bill pay nor biller direct models has 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.”
The transaction is expected to close in the second quarter. The companies did not disclose the terms of the transaction.