Finance committee recommends multiyear Paymentus contract to centralize city payments

The New Haven Finance Committee on Feb. 10 recommended that the Board of Alders approve a multiyear agreement authorizing the mayor and comptroller to contract with Paymentus Corporation to provide a unified payments platform for city residents and agencies.

Committee chair Adam Marchand said the committee would consider the vendor presentation first and then hear public testimony. The order on the agenda (LM2025-00043) would allow the city to consolidate roughly 20 different payment systems into one platform, city staff said.

Why it matters: City staff and the vendor said the platform would standardize fees across departments, provide a single reconciliation file that posts settled transactions the next day, and give departments intraday visibility into receipts. The presenters estimated upfront costs to upgrade hardware, with initial high-end estimates between $10,000 and $30,000; staff later described a tighter city estimate of $18,300 and a vendor example cost of about $8,300 for six cashiering devices. The contract would be executed under a national group-purchasing agreement; the vendor and staff said the base merchant-services term on that national agreement is seven years with three-year renewal terms thereafter.

What presenters said: Shannon McHugh, a city presenter, told the committee that the project would expand payment options across departments and allow residents to pay with Apple Pay, Google Pay, PayPal, Venmo, Amazon Pay, e-check and other methods. "What I'm really happy about is that New Haven will be the first city in the state to actually accept cryptocurrency," McHugh said, adding that Paymentus would accept Bitcoin, Ethereum and Dogecoin through PayPal, with PayPal converting crypto into U.S. dollars for the city.

A Paymentus representative described potential savings and a common merchant rate: "For example, your tax area, which is really the lion's share of where your activity is gonna be, is currently at 2.5%. We're reducing that to 2.45%," the representative said, explaining that a single rate across departments simplifies administration. The vendor said it does not charge annual subscription or maintenance fees and makes revenue from transaction fees; the company said it provides the software at no cost and asks only that the city cover hardware costs.

Concerns and clarifications: Alders asked about contract length, fee allocation, security and daily reconciliation. The committee heard that the contract term follows a national master agreement (seven years with three-year renewals) and that the city can choose which fees to absorb and which to pass to residents. The vendor said ACH/e-check payments could be offered for low fees (reported as $0.75 per e-check in the national agreement) and that lockbox, IVR and text-to-pay options are available to reduce barriers for underbanked residents. Staff and the vendor committed to provide additional security and uptime documentation on request.

Formal action: Alder Festa moved and a colleague seconded a motion recommending Item 1 (LM2025-00043) move forward; the voice vote carried and the committee gave the item a favorable recommendation to the full Board of Alders.

What's next: The recommendation will be forwarded to the full Board of Alders for consideration. Committee members said they expect staff to supply additional contract language (including the contract term) and vendor security documentation before or during the Board’s consideration.