Tyler Technologies is positioning itself for a new wave of payment transformation among state and local governments, as public agencies respond to growing pressure to move away from paper-based systems and legacy processes.
The Plano, Texas–based company specializes in software and payment solutions for municipal and state-level organizations. Founded in 1966, Tyler now employs roughly 7,600 people and supports government clients at around 15,000 locations nationwide. Its customer base ranges from large jurisdictions such as Los Angeles County to some of the smallest local governments in the country, including Loving County, Texas.
For the current year, Tyler expects to generate up to $2.36 billion in revenue, according to figures published by the company.
Federal Policy Sets the Tone
Although Tyler works only minimally with federal agencies, the company is already seeing downstream effects from President Donald Trump’s executive order issued in March, which directed federal agencies to eliminate paper checks and modernize payment methods.
Morgan Jines, Tyler’s vice president of payments, said the order has acted as a catalyst for state and local governments that were already considering similar changes.
Many smaller public-sector organizations are now under increasing pressure to move away from paper checks and basic ACH transfers. These entities historically depended almost entirely on older payment frameworks, but are now rapidly shifting toward digital payment models to keep pace with policy and public expectations.
Different Impact Across Government Sizes
Jines noted that the disruption is being felt most strongly by smaller towns, villages, and local jurisdictions that had limited payment flexibility in place. By contrast, larger government bodies — typically those serving populations exceeding roughly 75,000 residents — had already implemented multiple payment channels, such as card payments and digital wallets, leaving them better positioned to absorb the transition.
For these larger agencies, modernization has centered less on infrastructure gaps and more on evolving usage patterns. Increased reliance on card-based payments and decisions around whether agencies or residents bear transaction fees have become key considerations.
Smaller governments, meanwhile, are moving at a faster pace to roll out new payment options. Many are activating digital wallets and installment-style payment programs by building on cloud-based platforms that Tyler already has deployed within their operations.
Modernization Goes Beyond Payment Choice
According to Jines, modernization initiatives are no longer limited to simply offering more ways to pay. Public agencies are now prioritizing systems that can remain flexible over time, respond to regulatory shifts, integrate new technologies, and better defend against increasingly sophisticated fraud schemes.
Improved security controls and fraud prevention capabilities have emerged as foundational elements of these projects, alongside the need to meet industry compliance requirements and data protection standards.
Keeping Digital Payments Affordable
As governments broaden access to digital payments, keeping processing expenses under control has become a central concern. Tyler is helping clients address this challenge by implementing strategies such as payment orchestration and optimized debit routing, designed to steer transactions through the lowest-cost paths available.
The company is also working with utility and billing departments to identify opportunities for reduced card network rates, aligning payment configurations in ways that limit unnecessary fees while preserving convenience for users.
What Comes Next
Looking ahead, Tyler expects embedded financial features to become a standard component of government payment platforms. Capabilities such as installment payments and buy now, pay later — long familiar to consumers — are increasingly being viewed as baseline expectations for residents and businesses interacting with public agencies.
Real-time payment capabilities are also gaining traction. Faster settlement improves liquidity for government entities while delivering quicker confirmation and greater transparency for payers, creating benefits on both sides of the transaction.
Together, these trends signal a broader shift toward more adaptive, technology-driven payment ecosystems across the public sector.