JPay
| Company type | Private |
|---|---|
| Industry | Information technology, financial services |
| Founded | 2002 |
| Founder | Ryan Shapiro |
| Headquarters | Miramar, Florida , United States |
Area served | United States (35 states) |
Key people | Ryan Shapiro (CEO) |
| Products | Money transfers, email communication, video visitation, inmate MP3 players, JP4 tablet, parole and probation payments |
| Parent | Securus Technologies (since April 2015) |
JPay is a privately owned company specializing in information technology and financial services tailored to the U.S. correctional system. Based in Miramar, Florida, it provides a range of services—including money transfers, email communication, video visitation, and payments for parole and probation—to approximately 1.5 million incarcerated individuals across 35 states through contracts with state, county, and federal correctional facilities.
History
Established in 2002 by CEO Ryan Shapiro, JPay shifted its headquarters from New York to Miami in 2005. By 2009, the company broadened its product lineup by introducing the JP3 inmate MP3 player along with an accompanying music library.
In 2011, JPay relocated to Miramar to accommodate an expanded call center operation. The following year, it unveiled the JP4 tablet, a device created specifically for prison environments that allows inmates to send emails, play games, listen to music, and view photos and videograms. The deployment of JP4 varies among state correctional departments and includes jurisdictions such as North Dakota, Georgia, Florida, Louisiana, Virginia, Michigan, and Washington.
In April 2015, JPay was acquired by Securus Technologies; however, the financial details of the transaction were not made public.
Money transfer
JPay facilitates electronic fund deposits into inmate commissary or trust accounts through credit and debit card payments accessible via online platforms, telephone, and mobile applications. It collaborates with MoneyGram to enable cash deposits at physical agent locations across the U.S., including retailers like Walmart and CVS/pharmacy. Additionally, JPay processes money orders on behalf of its partner correctional agencies.
Communications and inmate devices
The company provides various inmate communication options such as video visitation, email services, videograms, instant messaging, and a proprietary tablet device known as the "J8P5."
Parole and probation payments
JPay supports offenders in meeting community corrections and court-mandated payment obligations. Among its offerings is the JPay Progress Card—a prepaid MasterCard that can be reloaded—designed specifically for parolees and probationers. While all agencies under contract use JPay’s money transfer solutions, not every agency implements the full range of JPay’s products.
Charitable donations
JPay has contributed to the Creative Corrections Education Foundation, a nonprofit organization established by a former Texas prison warden. This foundation provides scholarships for children of incarcerated individuals funded through donations from inmates and corporate supporters. By 2014, it had awarded $63,000 in scholarships over a two-year span.
State licensing violations
In 2012, the Pennsylvania Department of Banking imposed an $80,000 fine on JPay for operating since 2004 without the necessary state money transmitter license. By 2014, penalties totaling $408,500 had been levied against JPay across seven states due to unlicensed activities.
Intellectual property claims
In 2015, Valerie Buford filed a lawsuit against the Indiana Department of Corrections after her brother was placed in solitary confinement and lost access to JPay services following her reposting of a JPay videogram on Facebook. Prison authorities justified their actions by citing protection of JPay's intellectual property rights; at that time, JPay’s terms asserted copyright ownership over all content transmitted through its platform. Following criticism from the Electronic Frontier Foundation, JPay amended its terms to eliminate this provision.
Fees Associated with Debit Cards
Senator Cory Booker has committed to encouraging the Consumer Financial Protection Bureau to examine JPay's prepaid debit release cards, which frequently serve as the only means for former inmates to access their prison earnings and commissary funds. Reports indicate that the company imposes compulsory fees that can surpass 40% of the money owed to released individuals.
Revenue Sharing Arrangements
In nearly half of the states where JPay operates, its agreements with state correctional agencies include provisions to return a share of fees collected from those sending funds to inmates back to the prison authorities. This arrangement grants JPay exclusive control over inmate financial transactions. Disclosures from Illinois reveal that correctional facilities received approximately $48,000 in 2013 from these "commissions," a term used by founder Shapiro. Such practices raise concerns about imposing financial strain on families with limited resources who support incarcerated loved ones.
JPay also sponsors lavish gatherings for corrections personnel at industry conferences, providing upscale services and backing awards presented by the Association of State Correctional Administrators.
Although contracts prohibit lobbying activities, JPay has engaged registered state lobbyists and expended $20,000 on lobbying efforts in Washington to obtain federal prison financial transaction contracts previously held by Bank of America. A Master Contract with the National Association of State Procurement Officials and the Multi-State Corrections Procurement Alliance, effective through July 2015, included kickback terms such as 50¢ per incoming money transfer, 5¢ per outgoing email, $5 for each MP3 player sold, $10 per JP5 Tablet, and 5% of music download revenues—priced between 30% and 50% higher than iTunes.