Tuesday , October 15, 2024

Jack Henry Partners With Moov to Streamline Payments for Small Businesses

Jack Henry & Associates Inc. has partnered with payment processor Moov Financial Inc. to enable financial institutions to offer small and medium-size businesses enhanced digital-payment services.

The partnership is expected to help financial institutions attract more smaller businesses as clients and strengthen existing relationships with such sellers by providing for their digital-payment and deposit needs through a single provider. Small businesses typically have multiple relationships with banks and fintechs, which creates operating inefficiencies and integration issues while raising costs, the companies say.

The payments function will be integrated with deposit and core banking solutions, enabling financial institutions to serve at the center of the relationship with their clients, according to Jack Henry.

In addition, the partnership is expected to provide small and medium businesses access to one-click enrollment, automated itemized 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.

“This integration also will reduce the financial fragmentation that many [small businesses] face today from having multiple providers,” a Jack Henry spokesperson says by email.

The partnership with Moov will also help financial institutions capture small business’s deposits, which tend to be significantly higher than retail deposits, the parties say. Many Jack Henry clients have identified growing deposits as a top strategic priority, the Monett, Mo.-based company says.

Some 78% of Jack Henry’s clients plan to expand their small-business capabilities over the next two years, according to its 2024 Strategic Benchmark Survey, released earlier this year. Among the clients that are planning this expansion, about seven out of 10 cited payments as the service they planned to add.

“Moov is an innovative digital-payments fintech that shares our commitment to helping community banks and credit unions compete and meet the evolving needs of their customers,” the Jack Henry spokesperson says.

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