Financial institution empowerment and small-to-medium businesses (SMBs) are set to benefit from Jack Henry's debut of Tap2Local, an efficient digital payment solution that ensures quick and smooth transactions.
Jack Henry, a leading provider of technology solutions for financial institutions, has launched Tap2Local, a new digital payments solution designed to help small and medium-sized businesses (SMBs) accept card payments seamlessly and efficiently.
Tap2Local offers several key features that cater to the unique needs of SMBs. One of its standout benefits is the tap-to-pay capability on iOS and Android devices without additional hardware. This feature allows SMBs to accept debit and credit card payments effortlessly by simply tapping their device to the customer's card or mobile wallet [1][3].
Another advantage of Tap2Local is its cloud-native design with continuous account reconciliation. This feature ensures that transactions integrate automatically with the merchant's preferred accounting platform, reducing manual bookkeeping and streamlining financial management for SMBs [1].
The solution also processes transactions through all major card networks, ensuring broad acceptance and reliability for card payments [1].
Tap2Local is designed to be hardware-free, lowering upfront costs and complexity for SMBs compared to traditional payment terminals or card readers [1][3]. This makes it an attractive option for the 82% of small businesses that are sole proprietorships, according to the Small Business Administration [6].
The solution is part of Jack Henry’s broader cloud migration and embedded payments strategy, aiming to provide scalable, recurring revenue opportunities and to accelerate digital adoption for SMBs [2][5].
Tap2Local is offered exclusively through banks and credit unions, giving these financial institutions a tool to strengthen relationships with their SMB customers by providing integrated, convenient payment solutions that can capture more deposits and counter competitive fintech offerings [1].
Jeff VanDeVelde, senior director of Marketing at Jack Henry, states that the Tap2Local name represents the strong relationship between community banks, credit unions, and local small businesses [7].
Currently, Tap2Local is in closed beta testing with several financial institutions. Jack Henry plans to roll out Tap2Local to over 1,000 banks and credit unions on the Banno Digital PlatformTM in the next several months [4].
According to Datos Insights research, 75% of small businesses go outside their financial institution for at least one financial need, and 82% of small businesses want their primary financial institution to offer more payments options [8][9]. Tap2Local addresses these needs by offering continuous account reconciliation to the accounting platform of the merchant's choice [1][3].
In summary, Tap2Local empowers SMBs by simplifying digital payments with a fast, hardware-free tap-to-pay experience integrated directly into their banking relationship, improving operational efficiency, and facilitating better cash flow management through continuous reconciliation [1][3].
[1] Jack Henry [2] Finovate [3] American Banker [4] Banking Dive [5] PaymentsJournal [6] Small Business Administration [7] Jack Henry press release [8] Datos Insights [9] PYMNTS.com
The hardware-free Tap2Local solution, developed by Jack Henry, allows small and medium-sized businesses (SMBs) to accept card payments easily through a tap-to-pay capability on iOS and Android devices, without the need for extra hardware. In addition, with its cloud-native design, Tap2Local processes transactions through all major card networks and provides continuous account reconciliation, streamlining financial management for SMBs by integrating automatically with their preferred accounting platform.
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