Collections Acquisition Company, Inc.

Collections Acquisition Company, Inc. specializes in payment processing solutions, providing a suite of services for various sectors including lending and accounts receivable management, aimed at enhancing transaction efficiency and streamlining payment acceptance. Collections Acquisition Company, Inc. operates under the brand Payliance, offering payment processing solutions.

Founded in 2007 in Columbus, US, the company has undergone no significant pivots. The company is led by CEO John Cullen, with founder Steve Valachovic being instrumental in establishing its operations. In May 2019, Serent Capital acquired the company, marking its latest funding event without disclosed financial terms, with a total of 1 deal reported to date. Payliance specializes in providing comprehensive payment processing solutions tailored to various sectors, such as lending, accounts receivable management, and sports gambling.

Its core offerings include ACH (Automated Clearing House) transactions, card payment processing, and check-based solutions, designed to streamline payment acceptance and improve transaction efficiency. The company's advanced risk assessment tools enable clients to validate payment types with confidence, while debt collection solutions facilitate cost-effective recovery operations. Payliance’s platform is particularly beneficial for merchants and lenders, including those involved in prime and subprime lending, earned wage access, and buy now pay later programs. Their primary markets extend across the United States, encompassing thousands of merchant locations and catering to a diverse client base that includes over 350 lenders and various retailers.

Payliance processes substantial annual transaction volumes, evidenced by reports of over USD 61 bn processed and approximately 162 million transactions executed each year. The revenue model is structured around service fees incurred by merchants and lenders for payment processing, with a focus on ACH, card, and check-based transactions, essential for their clients’ operational success. Payliance engages in partnerships with independent sales organizations (ISOs) and offers a Payments-as-a-Service (PaaS) platform, enhancing its revenue through both B2B and direct-to-consumer channels. While specific pricing details for individual services are not disclosed, the company’s offerings are designed to optimize transaction costs and support efficient cash flow management for clients.

Payliance is focused on expanding its product offerings and enhancing its market presence. The company plans to launch new payment processing solutions tailored to emerging sectors, with specific products expected to be released in the next two years. Additionally, Payliance aims to enter new geographic markets, specifically targeting regions outside of the United States by 2025. The acquisition by Serent Capital in May 2019 is expected to provide the necessary capital to support these growth initiatives.