Aptys Solutions LLC this week introduced PayHub, a payment-processing system designed for community banks. The system supports multiple payment types, including automated clearinghouse transactions, mobile payments, wire funds transfers and check-image exchanges on a single platform.
The Rockwall, Texas-based start-up designed PayHub for banks with multiple business clients to process payments through one infrastructure, Eric Dotson, Aptys executive vice president of sales, tells PaymentsSource.
Aptys offers PayHub through a Web browser, which takes about 30 days to “get up and running,” Dotson says. The company also can host the system if financial companies prefer, he adds.
To get started, banks set up administrative protocols, which include the option to limit customer access. When chosen, the smaller financial institutions and their customers may only have access to ACH and check-image exchanges or just wire funds transfers. Enabling banks the option to restrict access can help reduce risk and generate more revenue, Dotson notes.
If a bank has a business customer sending remote deposit files and it has access to the ACH function on the Web site, the customer accidentally (or maliciously) could create ACH debits and distribute them. If the function is limited, then the risk is eliminated, Dotson explains.
Aside from helping to reduce risk, restricting access also helps increase revenue for banks, Dotson notes. For instance, if a bank is unable to restrict access and it had a small customer wanting only ACH payment-processing access to save on cost, then the bank is faced with either giving the customer total access to the system at a lower price and or losing that customer if the bank does not want to grant complete access, Dotson explains. Because PayHub allows restrictions, banks can just charge the customer for ACH and then later increase the fee if it adds more functions, he says.
One main PayHub benefit for banks is the opportunity to save money by using a single system, Dotson says. The price to use PayHub varies and is customized depending on whether a bank wants to operate the system in-house, have Aptys host it, or operate as a software-as-a-service model. A bank’s transaction volume also is taken into consideration, he notes. In-house includes license fees and annual maintenance, software-as-a-service includes a monthly fee, and hosted services include a combination of fees.
The platform is able to facilitate new payment types, such as mobile payments, without creating a new infrastructure, Dotson says. This means banks may find it simpler to adapt to emerging technologies without having to use a different system for each new payment type, he notes.
PayHub is supported by Microsoft 64-bit technology, which can process higher volumes of transactions than other processing systems. It also can enable Aptys to analyze transactions and provide instant feedback to banks. This feedback includes checking for invalid or fraudulent transactions, Dotson says.
Additionally, PayHub captures transaction data in a single archive, which makes it easier for banks to access information, Dotson notes. Eventually, Aptys plans to enable banks to run analytics on specific archives to locate fraud or other trends across specific payment types, he says.
As a start-up in competition with core processing companies such as Fidelity National Information Services Inc. and Fiserv Inc., Aptys may have difficulty making it in the market, Nancy Atkinson, senior analyst with Boston-based Aite Group LLC, tells PaymentsSource.
“I do, however, have to give these guys credit for targeting an underserved market such as the bankers’ banks,” she adds. “The main problem is that banks are hesitant to rip out existing systems and put in new ones.”
Aptys hopes to sign its first customer within the next two months, Dotson says.