Jack Henry and Moov teamed to help small businesses accept digital payments.
The FinTech and the digital payments processor announced a collaboration in a Tuesday (Sept. 3) press release aimed at assisting community and regional financial institutions in offering enhanced digital payment services to small- to medium-sized business (SMB) clients.
The cloud-native service will let these businesses accept payments with the tap of a phone, receive same-day funds for payments accepted, and automate reconciliations to accounting software packages, per the release.
“This innovation is made possible by our technology modernization 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 Jack Henry President and CEO Greg Adelson in the release.
Jack Henry Chief Technology Officer Ben Metz added in the release that SMBs typically have multiple relationships with banks and FinTechs to address their needs, “resulting in inefficiencies, increased costs and integration issues.”
“This service will reduce fragmentation and place community banks and credit unions at the center of the relationship,” Metz said in the release. “It also will help financial institutions capture SMB deposits, which tend to be significantly higher than retail deposits. This is especially compelling, as our clients have identified growing deposits as their top strategic priority.”
Payment delays can undermine SMBs’ cash flows and hurt their ability to reinvest in their operations and compete with larger companies.
It’s why Lorenzo Soriano de Teresa, senior vice president, merchant services at American Express, had just one word of advice for SMBs looking to improve their payment operations.
“Automate, automate, automate,” he told PYMNTS last month. “The right automation solution, or the right partner, can help businesses move past their current payments concerns to see tangible benefits.”
The idea of updating a business’s traditional payment methods can be daunting, but it doesn’t have to be, Soriano de Teresa stressed. Modern and vetted finance solutions are designed to integrate with existing software, resolving many of the complexities associated with such shifts.
“Implementing accounts payable (AP) and accounts receivable (AR) solutions, as we call them, is critical for SMBs struggling with late payments … and the payoff is well worth it,” he said.
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