Jack Henry announced the initial launch of Tap2Local™, a new digital payments solution that enables banks and credit unions to meet the evolving needs of their small and medium-sized business (SMB) customers.

Developed in collaboration with Moov, a modern digital payments processor, the cloud-native Tap2Local solution offers merchants many distinguishing features. Those include the ability to accept debit and credit card payments directly through tap-to-pay on both iOS and Android devices, eliminating the need for additional hardware, as well as continuous account reconciliation to the accounting platform of their choice. Transactions are processed through all major card networks.

Unlike most other payment solutions for small businesses, Tap2Local is offered exclusively through banks and credit unions. It is currently 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 the Banno Digital Platform™ over the next several months.

"Tap2Local is the first new key component of our overall SMB strategy to help banks and credit unions win with small businesses and capture significant new market opportunities," said Jack Henry President and CEO Greg Adelson. "This innovative solution integrates with banking services, enabling financial institutions to simplify the payments experience for small businesses, capture more deposits, and win back business from payments-only fintechs."

Jack Henry Chief Technology Officer Ben Metz said Tap2Local fulfills a need for small businesses, of which about 82% are sole proprietors, according to the Small Business Administration.

"Tap2Local helps all small businesses and the millions of people who participate in the gig economy accept card payments face-to-face and on-the-go," Metz said. "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 passion."