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Deluxe Corp. is expanding its digital lockbox capabilities with the acquisition of CheckMatch, formerly part of a J.P. Morgan business unit. Meanwhile, Marqeta Inc. completed its purchase of TransactPay, a BIN-sponsorship provider.
Minneapolis-based Deluxe says the addition of CheckMatch, which had been part of Kinexys by J.P. Morgan, the bank’s blockchain business unit, will expand its ability to digitize the delivery of paper checks and will be incorporated into the Deluxe Payment Network service. The service digitally connects physical lockboxes enrolled in DPN. Deluxe embarked on an expanded payments focus under the guidance of Barry McCarthy, president and chief executive since 2018,
Deluxe says it has doubled the number of lockboxes accessible via DPN, but did not disclose the tally. In a statement, McCarthy says the acquisition marks Deluxe’s continued investment in its business-to-business payments portfolio.
The CheckMatch acquisition will allow Deluxe customers to lower their costs for postage, supplies-such as envelopes—labor, and handling of paper checks. The acquisition comes against the backdrop of a U.S. government initiative to eliminate the federal government’s reliance on paper checks and reduce check fraud, which remains an issue for businesses, according to the latest study from the Association for Fraud Professionals.
Terms of the Deluxe deal to buy CheckMatch were not disclosed.
In related news, the Oakland, Calif.-based card-issuing platform Marqeta completed its TransactPay acquisition this week. TransactPay’s primary business is to provide bank identification number sponsorship services in the United Kingdom and the European Economic Area, which includes 30 countries. TransactPay, founded in 2012, is active in 25 of these.
As a licensed e-money institution, TransactPay can issue e-money and provide payment services in these markets. E-money, according to the European Commission, is a digital alternative to cash.
“Our business in Europe continues to grow, with total processing volume more than doubling year-over-year. This acquisition furthers this growth and demonstrates our commitment to the European and UK markets as part of our overall global strategy,” Marcin Glogowski, Marqeta senior vice president, managing director, and chief executive of Europe and the U.K., says in a statement.
