Expert insights: What’s next for payments and data at Deluxe?

A commitment to innovation is part of the Deluxe culture, one that encourages the exploration and adoption of new approaches and tools. Deluxe's technological initiatives are not solely focused on the immediate future but are also aimed at ensuring scalability and adaptability for their clients in the long run.

In an early 2024 interview, Deluxe leaders Barry C. McCarthy, President and CEO, Kristopher Lazzaretti, SVP, President of Data, and Yogaraj (Yogs) Jayaprakasam, SVP, Chief Technology and Digital Officer, were asked to share their thoughts on the future of payments and data at Deluxe – here’s what had to say.

“It's about a culture and a mindset,” shared Barry McCarthy. “It's not someone else's job – it’s our job to bring innovation to our customers to help them win.”

Being a catalyst for transformation in fintech requires more than goal-setting – it requires action at every level and in every decision at Deluxe.

“We know innovation isn't the job of one or two people in a company,” said McCarthy. “Innovation is the job everyone in the company – and innovation is possible in absolutely every aspect of a business.”

This mindset is why Deluxe has roots in Atlanta, one of the country’s leading tech hubs. It’s why Deluxe's leadership team is made up of players with rich, extensive backgrounds in payments and technology, such as Deluxe’s first Chief Technology and Digital Officer, Yogaraj Jayaprakasam, or the recently-appointed John Rubinetti, SVP and President of B2B Payments. This mindset of collaborative innovation is also seen in strategic partnerships and cooperative efforts across the fintech industry, collaborating with the likes of Microsoft, IBM and Salesforce. These decisions and more serve to further underscore Deluxe’s commitment to being at the cutting edge of technological innovation.

A customer-driven future

“Our team is always oriented towards developing solutions that better deliver on the challenges our clients are facing today,” shared Kristopher Lazzaretti. “Our customers’ businesses are evolving. We must evolve with them to serve them in the current macro-climate and in the current challenges that they're facing.”

Doing so critically requires scalable and adaptable solutions, which drives the need for creating a future-proof infrastructure that caters to the dynamic needs of all clients.

“Delivering for clients drives the spirit of innovation within our practice,” Lazzaretti concluded.

Innovation in payments

Innovating within the payments space means acting fast to keep up with shifting consumer demands. “Our B2B business is all about innovation with digitizing account receivable and accounts payable,” McCarthy further explained. “It’s the core of what our company does.”

With the integration of modern tools and an emphasis on automation, Deluxe is eliminating the need for manual processes that are both time-consuming and prone to error. The introduction of AI technology further optimizes these processes by reducing the need for human intervention. This not only streamlines operations but also significantly shortens the adoption curve for the clients, providing them with immediate and tangible benefits.

Innovation in legacy products

But the payments space is complex, and meeting the needs of the future must be coupled with meeting present client needs. Take checks, for example – while this payment method has been around for over 100 years, the way Deluxe manages this side of the business is constantly being examined for areas to innovate, streamline and improve.

“Even [in] our legacy check business, we're innovating around how we produce the checks, how we deliver them, how customers buy them online using ecommerce – every way that they'd like to interact and conduct commerce," continued McCarthy.

Innovation in data-driven solutions

It’s been said that data is the new gold, but not only does data have to be of high quality to be actionable, but it should come from a trusted, reliable source. 

“We've assembled what we believe to be the largest data lake,” said McCarthy. “[We have] more data sources than anyone else in the U.S. with over 100 different sources of data.” Enhanced by technological advancements such as AI and machine learning, this data can then be leveraged to uncover new markets and opportunities.

Innovation in merchant services

“In our merchant business, we're expanding rapidly in omnichannel commerce and bringing new payment types to market,” McCarthy said, emphasizing the importance of seamless onboarding of news tools and an easy end-user experience.

These efforts are designed to yield a synergy of technology and service that optimizes efficiency for their clients, ultimately delivering improved value and performance. Deluxe's initiative to create automation solutions, especially in the accounts receivable and treasury management areas, is pivotal to their strategic approach of adopting and integrating new technologies to stay at the forefront of financial innovation.

Addressing the “buy-build-partner” conundrum

The challenges of constant change, such as fluctuating interest rates and macroeconomic shifts, are hard to plan for. For businesses wanting to stay flexible and resilient, strategic partnerships can help shine some light on the path ahead. Collaboration plays a pivotal role in driving innovation and future proofing, especially in solving tangible problems and delivering practical solutions.  

When asked what challenges barriers businesses face today, Yogaraj (Yogs) Jayaprakasam said, “I would summarize that into one word, which is change.”

“There is way too much change,” Jayaprakasam continued. “You look at the outside world and there is interest rate inflation, macroeconomic conditions, technology trends – so much change.” For businesses trying to keep up with a growing list of fluctuating factors, this means having to constantly upgrade and pivot the way they do business and generate revenue.

“The only way [to] manage that better is [to] constantly upskill yourself [with] the buy-versus-build-versus-partner choices that you make,” concluded Jayaprakasam.

As the landscape of business undergoes constant change, organizations must adapt by upskilling and making strategic decisions on whether to buy, build, or partner for new capabilities – but whatever the choice, it should be driven by upskilled versus lateral support. When bringing on new technologies, team members or partners, the additional support must bring something new to the table.

Deluxe fosters a culture of innovation and provides solutions based in scalable, cloud-based infrastructures, with both initiatives allowing their clients to better navigate the continuous changes inherent in today's economic environment. By continually upskilling, transforming and collaborating with other industry leaders, Deluxe helps drive innovation and deliver solutions that are both practical and adaptable, bringing enhanced value to their clients.