Jack Henry Launches Tap2Local: A Digital Payments Solution for SMBs

Jack Henry has launched Tap2Local, a digital payments solution for small and medium-sized businesses. Developed in collaboration with Moov, the cloud-native solution allows merchants to accept debit and credit card payments through tap-to-pay on iOS and Android devices, eliminating the need for additional hardware. Tap2Local is exclusively offered through banks and credit unions and is currently in closed beta testing. It will be rolled out to over 1,000 banks and credit unions on the Banno Digital Platform in the coming months.

Jack Henry (Nasdaq: JKHY) has announced the initial launch of Tap2Local, a digital payments solution designed to meet the evolving needs of small and medium-sized businesses (SMBs). Developed in collaboration with Moov, a modern digital payments processor, Tap2Local is a cloud-native solution that enables merchants to accept debit and credit card payments through tap-to-pay functionality on both iOS and Android devices. This eliminates the need for additional hardware, making it a convenient and cost-effective option for SMBs.

The solution is exclusively offered through banks and credit unions and is currently in closed beta testing. It is expected to be rolled out to over 1,000 financial institutions on the Banno Digital Platform in the coming months. Tap2Local offers continuous account reconciliation to the accounting platform of the merchant's choice, ensuring seamless integration with their existing systems.

According to Jack Henry's 2025 Strategy Benchmark Survey, 80% of clients plan to expand SMB services, with 70% focusing on payments [2]. Research from Datos Insights found that 82% of small businesses desire more payment options from their primary financial institution, while 75% currently seek services elsewhere [2]. This demand underscores the strategic importance of Tap2Local, which positions Jack Henry to capture a significant market opportunity while strengthening relationships with financial institutions.

Jack Henry's Chief Technology Officer, Ben Metz, noted that Tap2Local addresses a critical need for small businesses, of which about 82% are sole proprietors [1]. The solution allows these businesses to accept card payments face-to-face and on-the-go, with easy enrollment through their bank or credit union and quick activation of payments in their banking app. The automated accounting feature further saves small businesses time, allowing them to focus on their core activities.

The launch of Tap2Local is part of Jack Henry's broader SMB strategy, which aims to help banks and credit unions simplify the payments experience for small businesses, capture more deposits, and win back business from payments-only fintechs. The solution's exclusivity through banks and credit unions creates a defensive moat against standalone fintech competitors, positioning Jack Henry to capture a significant share of the lucrative small business payments ecosystem.

References:
[1] https://www.prnewswire.com/news-releases/jack-henrys-initial-launch-of-tap2local-will-empower-financial-institutions-and-their-smb-customers-with-fast-seamless-digital-payments-302529282.html
[2] https://www.stocktitan.net/news/JKHY/jack-henry-s-initial-launch-of-tap2local-will-empower-financial-3xec8b1px4x2.html