Jack Henry launches Tap2Local digital payment solution

Jack Henry & Associates is launching a new digital payment solution that helps community banks and credit unions meet the evolving needs of small and midsize businesses.

Developed in collaboration with Moov, a cloud-based digital payment processor, the cloud-native Tap2Local solution offers several distinguishing features, such as accepting credit and debit card payments directly through tap-to-pay mobile phone apps, both iOS and Android.

Robert Hewlett, senior managing director at Jack Henry, said the new solution was designed to "augment" traditional POS solutions, for example, when an SMB sets up shop at a local flea market.

Ben Metz, the company's chief technology officer, said Tap2Local is especially helpful to sole proprietors which according to the Small Business Administration make up about 82 percent of small businesses.

Many of these businesses may already have relationships with ISOs but turn to their local banks for one-off situations like working a flea market, Hewlett stated.

Jack Henry said in a press release that Tap2Local eliminates the need for additional POS hardware and automates reconciliation through continuous integration with the business’s accounting platform of choice.

Tap2Local is now in closed beta testing with several financial institutions and is on track to be rolled out to the more than 1,000 banks and credit unions on Jack Henry's Banno Digital Platform over the next several months, the company said.

Local small businesses

"Tap2Local helps all small businesses and millions of people who participate in the gig economy to accept card payments face-to-face and on-the-go," said Metz. "We've made it easy for them to enroll through their bank or credit union and start accepting payments in their banking app within minutes. Additionally, our automated accounting feature can save them time, giving them back valuable hours to focus on their passions."

Banks and credit unions have been looking to grow their portfolios with small business offerings. Eighty percent of clients participating in the 2025 Jack Henry Benchmark Survey, for example, said they planned to expand services for small businesses over the next two years. Of those clients, nearly seven in 10 cited payments as a service they planned to offer small businesses.

The opportunity is underscored by research from Datos Insights, which found that better than eight in 10 small businesses want their primary financial institutions to offer more payment options.

Jeff VanDeVelde, senior director of marketing at Jack Henry, said the name Tap2Local is meant to represent the strength of the relationship between community banks, credit unions and the small businesses in their local communities.

"This solution solidifies the bank's or credit union's place at the center of the local economy by providing a modern tool that helps SMBs run their businesses while keeping their banking local," VanDeVelde said.

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