Jack Henry and Associates Payments Today: Are you prepared ... · MASTERCARD SOLUTION. Offered...

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Payments Today: Are you prepared for the future of payments?May 14, 2019

Jack Henry and Associates®

Welcome!adWelcome!

Thank You for Your Business

Bricklin DwyerSenior Vice President

Economic and Market InsightsMastercard

Greg AdelsonVP, Jack Henry & AssociatesGM, JHA Payment Solutions

Meet our PRESENTERS

Ron ShultzSenior Vice PresidentProduct Management,

Global Bill PayMastercard

Anita PaiDirector

Product Management,North America Bill Pay

Mastercard

JHA Payment Solutions Update

Greg Adelson

Vice President, Jack Henry & Associates

GM, JHA Payment Solutions

Bringing transparency, consistency and simplicity to an area ready for innovation

The Mastercard Bill Pay Exchange

INDUSTRY LANDSCAPE

Sources: Aite Research, Jan 2017 – How Americans Pay Their Bills

Bill pay represents a sizeable opportunity for banks and billers

Opportunity

Biller-Centric

Bank-Centric

62%73%

38%27%

2010 2016

Biller Bank

Bank vs. Biller Market Share

Mailed Checks

5.1B bills are paid via mailed checks, phone

Walk-in

1.4B bills are paid via walk-ins

CONSUMER PAIN POINTS

We have an opportunity to improve the bill pay experience; current methods are time consuming and do not meet consumers’ expectations of immediacy and transparency

• Cumbersome biller set-up; process is prone to errors

• Inability to see amount owed and details of each bill

• Unclear status of ACH-based payments (lack of payment confirmation)

• Lack of payment choice

• Unique logins and extra time required from paying at each individual biller

• Potential security issues as consumer must enter payment and other details on multiple sites

Biller-centric

Bank-centric

Banks can deepen customer relationships by focusing on the most in-demand features

Consumers are looking for their mobile banking offering to become a one-stop shop for financial management

All account access

Touch ID

Instant balance

Ability to see all bills due

Card controls

New mobile banking features in highest demandAmong U.S. adults using mobile banking, Q4 2017

Note: Values don’t total 100% because respondents could choose multiple answers. Source: Fiserv, n=3,114 adults, 2018

Bill pay ranks #2

MASTERCARD SOLUTION

Offered through banks, the Mastercard Bill Pay Exchange provides a mobile-first solution that adds the power of real-time payments to our industry-leading biller network.

Existing network of over 135,000 billersReal-time Payments

Mastercard Bill Pay Exchange

Mastercard RPPS

Bill Presentment

• New payment channel for billers

• Access to view bill summary and full bill details

• Ability for biller to send multiple reminders through bank channel

Bill Payment

• ACH batch (i.e. RPPS)

• Real-time payment via bank account

• Pay with credit, debit or prepaid card

Payment Confirmation

• Real-time consumer confirmation

• Real-time payment confirmation and automated reconciliation for the biller

Biller Setup

• Simplified biller setup for the consumer:

‒ Real-time validation of biller linking to consumer account

‒ “Smart” Biller Set-up

38% of U.S. adults using mobile banking reported ability to see all bills due as a top mobile banking feature

73% of consumers said instant transfer capabilities would be important in choosing a bank

The Mastercard Bill Pay Exchange adds real-time payments capabilities, bringing transparency, consistency and simplicity

FEATURES

The Mastercard Bill Pay Exchange will enable banks to offer a simple and convenient bill payment experience to their consumers through their mobile application

Biller Setup

PRODUCT DEMO

The Mastercard Bill Pay Exchange offers a mobile-friendly, centralized view of bills without the need to visit multiple biller sites

Payment RequestPayment

Confirmation

PRODUCT DEMO

In order to facilitate Bill Pay Exchange messaging, and the exchange of billing details between consumers and billers, partnerships are critical*

Billers

Mastercard Bill Pay Exchange

Consumer Banks

ProcessorsConsumer Banks

Billing Service Providers (BSPs)

Processors

Treasury Banks

Digital Content Providers

BILL PAY ECOSYSTEM

* Company logos are for illustrative purposes only

Product Development TimelineDEVELOPMENT TIMELINE

FALL 2019+

Product Build

Started

JUL 2018

OCT 2018

Final MVP specifications

published

Pilot Launch

DEC 2018 MAR 2019

SUMMER 2019

VOC FeedbackProduct | Technology

deep-dive workshops with partners

JAN 2019

Current Macro-Economic Trends

Bricklin Dwyer

Senior Vice President, Economic and Market Insights

Mastercard

Q&AQ&A

Jack Henry and Associates Payments Today: Are you prepared ... · MASTERCARD SOLUTION. Offered...

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