Less Touching, More Tapping: Financial Institutions Broaden Payment Options with Jack Henry Contactless Cards
On January 20, 2021, Jack Henry & Associates (NASDAQ: JKHY) announced an increase in the adoption of its EMV contactless cards by financial institutions in response to the COVID-19 pandemic. These cards offer a secure, efficient, and touch-free transaction option, appealing to consumer demand. Notable clients like Commonwealth Bank & Trust Co. and Goldenwest Federal Credit Union have transitioned to Jack Henry for their card programs. A.T. Kearney estimates that 56% of all cards will be contactless by the end of 2022, highlighting a significant market shift towards this technology.
- Increased adoption of EMV contactless cards by financial institutions.
- Partnerships with institutions like Commonwealth Bank & Trust Co. and Goldenwest Federal Credit Union.
- Market trend showing that 56% of cards will be contactless by the end of 2022.
- None.
MONETT, Mo., Jan. 20, 2021 /PRNewswire/ -- Jack Henry & Associates, Inc.® (NASDAQ: JKHY) is a leading provider of technology solutions and payment processing services primarily for the financial services industry. Today, Jack Henry Payments announced that an increasing number of financial institutions are using its EMV contactless cards to offer cardholders a faster, more convenient, and more secure way to transact. The modern card alternative is available with the full-service debit and credit transaction processing platform from JHA Card Processing Solutions™ (CPS) that provides card services to banks and credit unions.
While U.S. adoption of contactless payments has had a slow trajectory in comparison to most international markets, the COVID-19 pandemic renewed consumers' interests in tap-to-pay and no-touch ways to pay. Jack Henry's dual interface chip cards enable contactless transactions that leverage EMV technology, allowing a cardholder to tap the terminal for contactless purchases or insertion into the terminal for contact purchases.
Louisville, Kentucky-based Commonwealth Bank & Trust Co. is not new to contactless, but recently converted its card program to Jack Henry. Debbie Arno, vice president and card services manager for Commonwealth, said, "As the rules of engagement change, it's critical that we give customers more options to keep our debit and credit cards pushed to the top of their wallets. Choosing Jack Henry as a trusted partner for our contactless cards ensures we have a single, holistic view of our customers and that fraud prevention is a top priority. Also, our customers benefit from safer and faster checkout experiences – no need to touch the terminal or enter a PIN or zip code."
Ogden, Utah-based Goldenwest Federal Credit Union recently launched contactless cards to its members through Jack Henry as well. Carol Nyman, senior vice president at Goldenwest, said, "Contactless cards empower members to untether themselves from plastic and become nimbler in their payment choices. We're pleased to partner with Jack Henry to offer our members this level of flexibility that will also help us remain competitive in our offerings."
Lending more credibility to the need for contactless cards, A.T. Kearney, an American management consulting firm, forecasts that an estimated 56 percent of all cards in use will be contactless by the end of 2022. According to Visa Inc., most quick-service restaurants, drugstores, food, and grocery stores can accept contactless transactions. Additionally, many leading card providers including Capital One and Citi have added contactless technology to their credit card programs.
Phil Tollison, head of card processing solutions for Jack Henry, said, "Research confirms the increase that contactless payments are receiving in the prolonged pandemic environment. For years, the industry and consumers have been moving in the direction of contactless cards, but now many of those longer-term plans for adoption are being expedited based on the urgent and growing demand for a touchless payment experience. We're strategically positioned with the technology and experience to help financial institutions migrate to modern, high demand contactless card programs."
About Jack Henry & Associates, Inc.
Jack Henry (NASDAQ:JKHY) is a leading provider of technology solutions primarily for the financial services industry. We are a S&P 500 company that serves approximately 8,700 clients nationwide through three divisions: Jack Henry Banking® supports banks ranging from community banks to multi-billion-dollar institutions; Symitar® provides industry-leading solutions to credit unions of all sizes; and ProfitStars® offers highly specialized solutions to financial institutions of every asset size, as well as diverse corporate entities outside of the financial services industry. With a heritage that has been dedicated to openness, partnership, and user centricity for more than 40 years, we are well-positioned as a driving market force in future-ready digital solutions and payment processing services. We empower our clients and consumers with the human-centered, tech-forward, and insights-driven solutions that will get them where they want to go. Are you future ready? Additional information is available at www.jackhenry.com.
Statements made in this news release that are not historical facts are forward-looking information. Actual results may differ materially from those projected in any forward-looking information. Specifically, there are a number of important factors that could cause actual results to differ materially from those anticipated by any forward-looking information. Additional information on these and other factors, which could affect the Company's financial results, are included in its Securities and Exchange Commission (SEC) filings on Form 10-K, and potential investors should review these statements. Finally, there may be other factors not mentioned above or included in the Company's SEC filings that may cause actual results to differ materially from any forward-looking information.
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SOURCE Jack Henry & Associates, Inc.
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