Jack Henry is launching Tap2Local in partnership with Moov to enable banks and credit unions to offer small business clients tap-to-pay card acceptance.
Tap2Local is exclusive to financial institutions, offers automated account reconciliation, and doesn’t require any extra hardware.
Tap2Local integrates into the Banno Digital Platform and will roll out to over 1,000 banks and credit unions after closed beta testing.
Small banks are under increasing pressure to match the tech-forward tools offered by larger competitors. Financial services platform Jack Henry is aiming to help them rise to the challenge with its latest solution, which is designed to enable banks and credit unions to provide merchant acquiring services to their small business clients.
The Missouri-based company developed the new tool, Tap2Local, in partnership with payment infrastructure company Moov. With Tap2Local, businesses will be able to accept debit and credit card payments using tap-to-pay, which eliminates the need for hardware. The tap-to-pay functionality is available on both Android and iOS through all major card networks. Tap2Local also offers continuous, automated account reconciliation to the business’ accounting platform of choice.
“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.”
Moov’s Tap2Local is offered exclusively through banks and credit unions. The technology, which is in closed beta testing with several financial institutions, will be rolled out to more than 1,000 banks and credit unions using Jack Henry’s Banno Digital Platform over the next several months.
For many small banks, competing with tech capabilities that legacy players offer is more than just a challenge; it has increasingly become a survival issue. Merchant acquiring, in particular, has become a lucrative area dominated by fintechs and large institutions. Tap2Local will help level the playing field.
“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,” Jack Henry Chief Technology Officer Ben 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.”
Moov was founded in 2017 by Wade Arnold, who originally launched Banno in 2008 before selling it to Jack Henry in 2014 for an undisclosed amount. Moov’s cloud-based payment processing technology helps businesses accept, store, send, and spend money through a single integration. The company has built its platform with developers in mind, offering open-source libraries and a growing community.
Photo by Afta Putta Gunawan
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