Deluxe, a payments and data company, has acquired CheckMatch from Kinexys by JPMorgan. The purchase aims to enhance Deluxe’s digital payment capabilities by integrating CheckMatch into the Deluxe Payment Network (DPN). This move provides a direct connection to over half of the top lockbox operators in the U.S. and several disbursement partners.
Deluxe’s attempt to modernize its services follows its longstanding history in check printing and more recent push into business-to-business payment software. By purchasing CheckMatch, Deluxe emphasizes efficiency and security, shifting significant payment processes from paper to digital formats.
How Exactly Does This Benefit Businesses?
Businesses can significantly benefit from reduced mail float, improved cash flow, fewer instances of fraud, and streamlined operations. Deluxe CEO Barry McCarthy stated,
“One network for the entire system,”
alluding to the prospects of efficiency and reduced complexity in payment processes. Businesses gain the advantage of quick settlement and less tedious reconciliation processes.
Will This Move Meet Expectations?
The goal set by Deluxe involves migrating existing lockbox activities into digital channels while maintaining existing workflows for users. The acquisition also holds potential interest for CFOs and treasurers, as electronic file transmissions optimize cash flow management. With processes like insurance claims and supplier rebates potentially benefiting from the changes, there is an expectation of substantial influence in these sectors.
Considering the change within Deluxe as it consolidates networks, the merger is set to conclude by mid-2026, expanding connectivity among major lockbox processors and multiple platforms for bill payments and accounts payable automation. This will allow payors to reach their objectives with ease and efficiency.
Deluxe’s strategy includes plans for additional services like dispute management and exception handling, aiming to provide more control to treasurers. McCarthy noted,
“delivering value through scale, security and simplicity.”
As the platforms transition, interruptions to customers are expected to be minimal.
This consolidation reflects Deluxe’s aim to integrate digital solutions extensively into its offerings. While previously the physical exchange dominated these transactions, the current advancement highlights reduced reliance on printed checks and envelopes, offering convenience.
Deluxe aims to stay ahead by capitalizing on digitization opportunities and meeting evolving market requirements. By facilitating interactions through seamless digital networks, they continue to express interest in aiding large disbursements associated with significant corporate transactions. Businesses that adapt can expect an advantage in a more connected and economically supportive environment.
