Jack Henry Partners with Moov to simplify digital payments for small businesses
Jack Henry™ (Nasdaq: JKHY), a leading provider of technology solutions and payment processing services primarily to the financial services industry, today announced a partnership with Moov, a modern digital payment processor, to develop digital payment services for small and medium-sized businesses. businesses (SMBs) through public and regional financial institutions.
This partnership will enable financial institutions to offer SMBs new payment services, including the ability to accept payments with a tap of the phone, receive same-day funds, and perform automatic reconciliations with accounting software. These services will be integrated with the existing deposit of financial institutions and core banking services, helping to facilitate business operations and improve the efficiency of SMBs.
Strategic Innovation to Support Community Banks and Credit Unions
“This innovation is made possible by our technology development strategy to provide public and regional financial institutions with cloud-based, API-first services that allow them to strategically differentiate, compete effectively, and meet the evolving needs of their customers,” said Jack Henry President. and CEO Greg Adelson. “We are pleased to partner with Moov on this unique solution that will provide modern, innovative business payment capabilities to our customers seamlessly integrated with deposit and core banking services.”
Jack Henry’s Chief Technology Officer Ben Metz highlighted the benefits of the service, emphasizing its ability to reduce fragmentation for SMBs, who often have multiple relationships with banks and fintechs.
He says, “This service will reduce fragmentation and put community banks and credit unions at the center of the relationship,” Metz said. “It will also help financial institutions to capture SMB deposits, which are often much higher than retail deposits. This is particularly compelling, as our clients have identified growing deposits as their strategic priority.”
Addressing the Needs of America’s Small Businesses
According to the Small Business Administration, there are approximately 33.3 million small businesses in the US, representing 99.9% of all US companies. However, a 2023 study by Datos Insights revealed that 56% of small business banks have one of the four big banks, while only 18% have a small financial institution.
Recognizing the importance of this market, Jack Henry’s 2024 Strategy Benchmark Survey found that 78% of its customers plan to expand their small business capabilities in the next two years, with nearly 70% prioritizing the addition of payment services for SMBs.
Jack Henry and Moov are planning a multi-phase rollout of this new service, with beta testing expected to begin in mid-2025.
