Jack Henry Connect 2025: Tap2Local a Game Changer for SMBs

By John San Filippo

The 2025 edition of the Jack Henry Connect user conference was help in San Diego Sep. 8-11. Day Two opened with a presentation by Jack Henry CTO Ben Metz that covered a wide range of topics and initiatives but paid particular attention to the company’s new Tap2Local payment solution for small and medium-sized businesses (SMBs), a joint project of Jack Henry and Moov.

His session was followed by a panel discussion on Tap2Local. This discussion was moderated by event emcee Mark Jeffries and included Metz, as well as Jack Henry VP of Corporate Strategic Planning and Initiatives Erica Pilon, Jack Henry Senior Advisor and Product Management Consultant Chris McNulty (who also owns a pizza shop in Louisville, Ky.), and Moov CEO Wade Arnold.

(l-r) Mark Jeffries, Erica Pilon, Chris McNulty, Wade Arnold, Ben Metz

In his session, Metz described the product as part of a larger technology transformation. He explained how it is part of a broader strategy to help community financial institutions (FIs) compete with what he called “milkshake drinkers” (in reference to the Daniel Day-Lewis movie There Will Be Blood) – fintechs like Square and Stripe that are syphoning off the small business market from community FIs.

The Tap2Local Solution

Tap2Local is designed to give community FIs a modern way to help their SMB accountholders accept payments, he further explained. The solution allows merchants to accept debit and credit card payments directly on iOS and Android devices using tap-to-pay technology, which eliminates the need for any additional hardware or dongles. Tap2Local is integrated with Jack Henry’s core banking platforms (Symitar, Silverlake, CIF 2020 and Core Director), as well as the Banno digital banking platform, which allows for a seamless, branded experience for the FI. Metz assured the audience that while the initial integration is with Banno, Jack Henry will be integrating Tap2Local with other digital banking platforms via application programming interfaces (APIs).

For FIs, the deposits from these transactions remain within the institution. This, Metz noted, is a major benefit for banks and credit unions that want to win back SMB deposits from fintechs that have been drinking the FIs’ milkshakes. The solution also provides a new non-interest fee revenue stream through a revenue-sharing model that Jack Henry is offering to all its Banno customers.

Why Tap2Local Is a Game-Changer

Commenting on what makes Tap2Local unique, Pilon stated, “No one’s ever done this before and it’s through you as opposed to around you,” referring to the banks and credit unions in the audience.  She added that community banks and credit unions are the heart of their communities and that it is frustrating that SMBs have been an “untapped market.”

Speaking as a small business owner, McNulty emphasized the solution’s convenience and trustworthiness. “It’s frictionless. But it’s with my bank or credit union, so it’s a trusted organization,” he noted. He added that while fintechs like Square and Stripe offer convenience, there is a lack of personal support. In contrast, Tap2Local merchants have access to first-level tech support directly from Moov.

McNulty also shared a personal story about his pizza business, where a power outage left him unable to accept card payments. He said, “Had I had Tap2Local, I could have just taken the payment right there outside of my normal infrastructure.” He believes every small business should have the solution as a backup.

Arnold explained that the partnership with Jack Henry gives community banks and credit unions an “unfair advantage” because of the presence of those financial institutions in the community. Speaking as a fintech, he asserted, “I think you can serve your community better than I can.” Metz also spoke about how the solution helps financial institutions get access to new businesses and “edge payments” that they are not currently getting.

Complementing, Not Replacing

The panel also addressed the misconception that FIs would have to choose between their current merchant services and Tap2Local. McNulty explained that Tap2Local is intended to complement existing merchant programs, not cannibalize them, and that it targets a micro-merchant segment that is largely underserved.

The panelists then touched upon fraud prevention. Arnold explained that Moov handles the risk and uses “behavioral analytics, device analytics, transactional monitoring” to stop fraud. Metz added that Jack Henry’s fraud system communicates in real-time with Moov’s platform to shut down fraudulent devices.

The panelists concluded the discussion by reiterating the core message: Tap2Local helps community FIs win with small businesses by providing a modern, integrated, and profitable solution that fintechs cannot replicate. Pilon stated flatly, “Not only is no one else doing this today; no one else can do this today.” She cited the integration with core systems, Moov’s technology, and open banking as reasons for this unique position. Metz concluded with a simple statement: “We’re here to help you win. That’s what we’re here to do.”