KeyCorp buys software developer XUP

KeyCorp in Cleveland has acquired XUP Payments, a B2B-focused digital platform. 

The $187 billion-asset KeyCorp, which did not disclose the price it paid, said it will use XUP’s payments-related technology to improve the experience of its commercial products. XUP, a software developer, has built integrations with processors, third-party risk tools, customer relationship management systems and other fintech services.

KeyCorp initially partnered with XUP in early 2020 on a project to upgrade its merchant-onboarding processes. KeyCorp bought an equity stake in XUB in February.

Chris May, XUP's president, will join KeyCorp.

"We've long embraced the software innovation that's sweeping through the financial services industry, and the acquisition of XUP allows us to continue to be a leader in this space," Ken Gavrity, KeyBank’s head of enterprise payments and analytics, said in the release. 

"XUP's highly experienced team has accelerated us on the journey to build connectivity across our systems, our partners, and our customers, to make it easy to do business with Key," Gavrity added.

KeyCorp bought AQN Strategies earlier this year to enhance its data analytics capabilities. It bought Laurel Road’s digital student loan refinance platform in 2019. The company also has partnerships with AvidXchange, BillTrust and Bill.com.