IBM has acquired Expertus Technologies, a FinTech organization focused on bringing enterprise payment architectures into the modern era.
On Tuesday, the tech giant said the acquisition will allow IBM to obtain "decades of consulting experience to address the most pressing payment modernization challenges of financial institutions" in one stroke, through not only Expertus' existing payment solutions, but also due to the consultants that have extensive experience in the field now joining IBM.
Financial terms were not disclosed.
Founded in 2001, the Montreal, Canada-based company offers payment-as-a-service cloud solutions to banks, credit unions, and enterprise players. Over $50 billion is processed through the Expertus platform daily. Expertus also acts as a SWIFT Service Bureau, utilizing the SWIFT financial network which is used by banks worldwide to manage transactions.
IBM says that over the next few years, the digital payments consultancy market in banking and finance could be worth as much as $100 billion -- an industry IBM is keen to be involved in.
Expertus has now become part of IBM Global Business Services and the firm's platform will be merged with IBM financial solutions.
"The acquisition strengthens IBM's portfolio as an end-to-end digital payments solution provider and further advances IBM's hybrid cloud and AI strategy," IBM says.
By bringing Expertus into the fold, IBM says the company will now be able to offer financial institutions "end-to-end business processes embedded with AI, data, and analytics," improved pricing cost per transaction, and additional payment modernization expertise via IBM Cloud for Financial Services.
"Financial institutions must balance greater demand for secure digital solutions while complying with rapidly evolving regulation," said Mark Foster, SVP of IBM Services. "Expertus' payment-as-a-service solution expands our hybrid cloud-based payments offerings, transforming payments and treasury management with AI to give financial institutions the flexibility to rapidly innovate and stay competitive as consumer demands evolve."
In November, IBM made two other acquisitions of note. The purchase of TruQua, a SAP financial solutions and analytics consultancy company was made public on November 16, and two days later, IBM said it acquired Instana, a container monitoring and observation provider, as part of the tech giant's ongoing automation and multicloud deployment strategy.
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