Jack Henry and Moov to Simplify Digital Payments for Small Businesses

Core Viewpoint - Jack Henry collaborates with Moov to enhance digital payment services for small and medium-sized businesses (SMBs) through community and regional financial institutions, aiming to improve service offerings and capture more deposits from SMBs [1][4]. Group 1: Collaboration and Service Features - The partnership will enable SMBs to accept payments via mobile devices, receive same-day funds, and automate reconciliations with accounting software [2][6]. - The service is designed to reduce fragmentation in banking relationships for SMBs, allowing community banks and credit unions to centralize their services [4][7]. - The solution will include features such as one-click enrollment, automated transaction processing, and instant balance transfers [7]. Group 2: Market Context and Strategic Importance - There are approximately 33.3 million small businesses in the U.S., representing 99.9% of all U.S. firms, with a significant portion banking with larger institutions [4]. - Jack Henry's 2024 Strategy Benchmark Survey indicates that 78% of clients plan to expand their small business capabilities, with nearly 70% focusing on payment services [5]. - The collaboration aligns with the strategic priority of financial institutions to grow SMB deposits, which are typically higher than retail deposits [4]. Group 3: Future Developments - Beta testing for the new payment solution is expected to begin by mid-2025, with further details to be shared during Jack Henry's 2024 Investor Day [7].