Jack Henry has expanded its collaboration with MVB Bank’s Victor Technologies.
The partnership, announced Monday (Sept. 30), has resulted in an embedded payments management platform to help Jack Henry’s financial institution clients capitalize on payments-as-a-service (PaaS) opportunities.
“The payments landscape is changing. Payments are increasingly a part of businesses’ strategies to improve the customer experience with instant payments, wallet integrations, financing options, and loyalty programs,” Maf Sonko, chief operating officer at Victor, said in a news release.
“It’s critical for financial institutions to support and facilitate this transformation. By working with Jack Henry, we are empowering more financial institutions to support embedded payments for their commercial clients. This will positively impact the growth of both financial institutions and their clients.”
According to the release, many financial institutions are considering PaaS, though only a handful are offering the service. And early versions of PaaS were hindered by insufficient accounting and audit controls.
“The Victor PaaS platform, built under the oversight of MVB Bank with financial institutions in mind, gives financial institutions more direct control and visibility within this transparent, direct-to-core PaaS offering,” the companies said. “With this integration, financial institutions will have the opportunity to grow low-cost deposits and non-interest fee income.”
In other embedded payments news, PYMNTS wrote earlier this month about the way this system is transforming B2B eCommerce.
“For many businesses, payments have historically been treated as a separate, often cumbersome process that occurs after the real value exchange has already taken place, like the delivery of goods or services,” that report said.
“Embedded payments, however, flip this paradigm on its head by embedding the payment function directly into business software and platforms, such as enterprise resource planning (ERP) systems, procurement portals and supply chain management tools.”
Under this new model, payments are more than just a standalone transaction, but rather become an integrated part of the digital hub for conducting business.
When companies embed payment credentials into their systems, they can automate their financial workflows, lower friction in the payment process and foster real-time visibility into payment status, approvals and cash flow.
“This, in turn, can accelerate decision-making, improve supplier relationships and unlock new growth opportunities,” PYMNTS wrote.
Jack Henry’s expanded partnership with Victor comes on the heels of the company’s recent collaboration with digital payments processor Moov to help community and regional financial institutions offer enhanced digital payment services to small businesses.
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