Jack Henry has announced a partnership with Moov, a digital payments processor, to provide community and regional financial institutions with advanced digital payment solutions for small and medium-sized businesses (SMBs).
This collaboration aims to enable these institutions to offer improved payment services to their SMB customers.
The new cloud-native service will allow SMBs to accept payments via mobile devices, receive same-day funds, and automate reconciliations with accounting software. The service will be delivered through financial institutions, which will enhance their ability to address their clients’ deposit and payment requirements.
Jack Henry president and CEO Greg Adelson said: “This innovation is made possible by our technology modernisation strategy to offer community and regional financial institutions cloud-native, API-first services that allow them to differentiate strategically, compete successfully, and meet the evolving needs of their customers,” said Adelson.
According to the Small Business Administration, there are approximately 33.3 million small businesses in the US, accounting for 99.9% of all U.S. firms. Datos Insights’ 2023 survey reveals that 56% of small businesses bank with one of the four largest banks, while only 18% use a smaller financial institution.
Jack Henry’s 2024 Strategy Benchmark Survey found that 78% of clients plan to expand their small business capabilities within the next two years, with nearly 70% targeting payment services.
Moov co-founder Wade Arnold said: “We look forward to working with Jack Henry to modernise payments for SMBs through community and regional financial institutions.
“This solution will provide many benefits to SMBs, including one-click enrolment, automated itemised transaction processing and reconciliation, instant balance transfers from linked accounts to cover same-day transaction needs, and an integrated payment relationship with the financial institution.”
Jack Henry and Moov are working on a multi-phased rollout, with beta testing expected to start by mid-2025.
