Official Payments Corporation announced the company has signed a strategic alliance with Michigan National Bank.
Under the agreement, the bank’s Public Funds group will market Official Payments’ electronic tax and fee payment services products to Michigan National’s base of government and educational clients. Michigan National’s Public Funds Group clients include over 700 local authorities, several state universities, and other state-level agencies.
Official Payments’ services enable consumers to charge their taxes, fees, fines, tuition, and other payments to their credit cards, via Internet ([www.officialpayments.com]) and telephone (1-800-2PAY-TAX). Official Payments provides similar services to the Internal Revenue Service, 17 state governments and over 700 counties and municipalities in 41 states across the United States.
“Official Payments’ agreement with Michigan National allows us to expand our marketing within the state, bringing the convenience of credit-card payments to a larger base of government and university clients,” said Thomas R. Evans, Chairman & CEO of Official Payments Corporation. “We expect this alliance will significantly enhance our sales efforts within Michigan,” Evans added. Official Payments currently provides services to 45 municipal and county clients in Michigan, including Auburn Hills, Flint, and Grand Rapids.
“We are pleased to work with Official Payments to expand the array of services we provide,” said Ron Jeszke, Director of Public Funds at Michigan National. “Through these services, Michigan’s municipalities and educational entities can offer citizens and students the ability to pay their taxes and fees with their credit cards, making the collection process faster and easier,” Jeszke added.
Official Payments will charge citizens and students a convenience fee for their use of the service. The fee averages between 2.5% and 3% of the payment amount. As a bonus, taxpayers using credit cards with bonus rewards programs can, depending on their card’s program, earn rewards, points, and cash-back or airline frequent flyer miles for paying their taxes and fees.
About Official Payments Corporation
Official Payments Corporation (Nasdaq: OPAY) is the leading provider of electronic payment options to government entities. The company’s principal business is enabling consumers to pay their government taxes, fees, fines, and utility bills by credit card, via Internet and telephone. The company is unequaled in market penetration and national footprint. Official Payments is the incumbent in contracts with the Internal Revenue Service, 18 state governments, and well over 700 county and municipal governments in 41 states across the United States. In 2000, Official Payments collected and processed over $925 million in federal, state, and local government payments.
Official Payments was founded in the San Francisco Bay area in 1996. Thomas R. Evans, the former President & CEO of the Internet company GeoCities, became Chairman & CEO of Official Payments in the summer of 1999. Mr. Evans brought Official Payments public in November of 1999, raising $80 million in its IPO on the NASDAQ national market. The company has experienced rapid and sustained growth over the past six reported quarters in revenue, new client acquisition, and addition of incremental services to existing clients. The company’s success can be attributed to the combination of an enormous market opportunity with a highly skilled and experienced management and staff, aggressive sales and marketing, and a core competency in developing and implementing leading-edge technical systems.
About Michigan National
Michigan National provides diversified financial services and offers creative ideas and product options designed to help consumers and businesses meet their financial goals. It is committed to being the financial services corporation of first choice in its markets and provides the leading-edge products and services that customers expect from a member of a global financial network.