© 2019 Jack Henry & Associates, Inc.®1 © 2019 Jack Henry & Associates, Inc.®

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

Jack Henry and Associates®

© 2019 Jack Henry & Associates, Inc.®2

Welcome!adWelcome!

Thank You for Your Business

© 2019 Jack Henry & Associates, Inc.®3

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

© 2019 Jack Henry & Associates, Inc.®4

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

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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

80%

20%

Mailed Checks

5.1B bills are paid via mailed checks, phone

Walk-in

1.4B bills are paid via walk-ins

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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

29%

31%

36%

38%

48%

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

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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.

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Existing network of over 135,000 billersReal-time Payments

Mastercard Bill Pay Exchange

Mastercard RPPS

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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

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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

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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

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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

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Product Development TimelineDEVELOPMENT TIMELINE

MVP+

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

© 2019 Jack Henry & Associates, Inc.®14

Current Macro-Economic Trends

Bricklin Dwyer

Senior Vice President, Economic and Market Insights

Mastercard

© 2019 Jack Henry & Associates, Inc.®15

Q&AQ&A