Acquisitions, EMV, Partnerships & Growth as ACI goes for Rebranding

ACI Worldwide powers electronic payments and banking for more than 5,000 financial institutions, retailers, billers and processors around the world. ACI software processes $13 trillion in payments and securities transactions for more than 300 of the leading global retailers, and 21 of the world’s 25 largest banks. Through its comprehensive suite of software products and hosted services, ACI delivers a broad range of solutions for payments processing; card and merchant management; online banking; mobile, branch and voice banking; fraud detection; trade finance; and electronic bill presentment and payment.

The company had recently rebranded itself to ACI Universal Payments or ACI UP. ACI has helped banks implement intelligent, customer-centric financial crime management solutions designed to detect and manage unusual activity based on the known patterns in an account or transaction activity within an institution. This enables the banks to minimize losses, improve efficiencies, comply with government regulations and shield their customers from fraud.

ACI works heavily on tokenization and provides exclusive solutions for payment systems. The ACI Token Manager supports the lifecycle management of smart cards including EMV cards, contactless cards, and single & multi-application cards. ACI Token Manager also supports the lifecycle of near field communication (NFC) payment devices. It can provide over-the-air (OTA) lifecycle management of applications, cryptographic keys and secure elements on NFC-enabled mobile devices for contactless payment technology.

ACI primarily focuses on two segments: merchant acquisition and banks. ACI’s solution set provides acquirers with the capability to implement and manage merchant agreements with a wide range of pricing and settlement options. ACI offers banking solutions under three verticals:

  • ACI Architect Banking helps credit unions and community banks drive success by enabling them to quickly and cost-effectively deliver the right messaging, respond to client needs, support their fastest growing channels, and drive client loyalty.
  • ACI Consumer Banking offers community financial institutions flexibility, speed and choice, allowing banks to respond quickly to the specific needs of consumers with online banking services such as personal financial management, online account opening and money transfer.
  • ACI Online Banking provides a rich banking user experience so that everyone from consumers to micro- and mid-market businesses can effortlessly manage their money.

ACI is currently focusing on getting into new payment technologies and is scaling up as an organization. The company has made some significant acquisitions in recent years to build its portfolio of capabilities.

Back in 2012, ACI had acquired Distra Pty Ltd. The integration of technologies from ACI and Distra now enables financial institutions, processors and retailers to enhance the flexibility and performance of their existing payments infrastructure to address some key market needs, such as mobile & social channels and payment services hubs. ACI was able to leverage Distra’s Service-Oriented Architecture (SOA)- based payments platform that helps to significantly reduce the risk and cost of payments transformation.

Last year, ACI acquired Retail Decisions (ReD) to leverage its suite of solutions that helps customers drive up revenues while reducing fraud losses and increasing the efficiency of their fraud management teams. Post the acquisition, both ReD and ACI can now use card-present and card-not-present data from past records in order to authorize transactions. ReD continues to work with other payment gateways as well.

ACI’s latest initiatives include a partnership with Paydiant to offer ACI Mobile Framework 2.0, which has backend support from the Paydiant Platform. This mobile framework brings in substantial benefits compared to direct POS integration:

  • Pre-integration with Paydiant mobile payments solution and MCX network
  • Flexible delivery options, offered for on-premise or hosted environments
  • Streamlined integration with POS systems, reducing time-to-market and integration costs
  • Support for variety of traditional and non-traditional payment methods with the Paydiant platform

ACI’s plans for this year include:

  • Focusing on building more capabilities with the ReD acquisition
  • Work extensively on US EMV adoption
  • Work with Auchan Group on Pan-European Centralized Card Payments Platform
  • Further expand into Asian market by working with banks
  • Taking the collaboration with Paydiant forward