the secret to becoming the financial hub for small businesses

the untapped opportunity

The financial health of your community rests on the success of its small businesses – yet they’re often overlooked and underserved by traditional financial institutions.

According to a report by Datos Insights, 82% of small businesses want more payment options from their primary financial institutions, and 75% go outside their bank or credit union for at least one financial need.^[1] This gap creates a critical vulnerability: fintechs and big banks are stepping in with modern, mobile-first solutions that meet these evolving needs.

For community banks and credit unions, the question is clear: How can you reclaim this space and strengthen your role as the trusted financial partner for small businesses?

The answer lies in making it simple to offer payment acceptance directly within your digital tools – transforming your organization into the financial hub for local businesses.

The Small Business Gap

Traditional merchant services often fail to meet the needs of micro-merchants, seasonal sellers, and service-based sole proprietors.

These businesses require fast, flexible payment acceptance tools without the complexity or cost of full point-of-sale systems. When those needs aren’t met, they turn to third-party platforms – fragmenting their financial relationships and diverting deposits away from your organization. This isn’t just a missed opportunity … it’s a competitive threat. Fintechs are leveraging payment solutions as a gateway to cross-sell deposits, loans, and other financial products. In fact, $1 of every $8 collected through third-party apps like PayPal or Square never makes it back to the primary financial institution.^[2]

When you offer the same seamless, mobile-first experiences within your own ecosystem, you make the decision to bank with you the easiest one for your accountholders.

your new advantage: embedded, mobile-first payment acceptance

Now, you can offer Tap2Local™ – the cloud-native, API-driven payment solution integrated right into the Banno Digital Platform™. Here’s what your micro and small business accountholders will have access to when you offer Tap2Local:

• Mobile card acceptance: Businesses can accept debit and credit card payments directly on iOS and Android devices using tap-to-pay technology.
• Flexible payment options: QR codes and payment links allow businesses to accept payments in person or remotely – ideal for pop-ups, events, and social media.
• Automated reconciliation: Seamless integration with accounting systems like QuickBooks and Xero ensures transactions are matched and reconciled automatically.
• Near real-time funds availability: Next-day settlement is standard, accelerating cash flow and improving business management.
• Transaction insights: Embedded reporting within the banking app enhances the financial institution’s value proposition for business accountholders.

Unlike traditional merchant services providers, Tap2Local requires no hardware, offers fast onboarding for most businesses, and consolidates payments and banking in one platform, ultimately reducing reliance on external fintechs.

Strategic Advantage for Financial Institutions

Tap2Local isn’t just a payment solution – it’s a growth strategy. By embedding payment acceptance capabilities into your digital banking experience, you can:

• Drive deposits: Payments settle directly into your financial institution’s accounts, increasing transaction volume and deposit inflows.
• Defend against fintech encroachment: Offer the same modern, mobile-first experience that fintechs provide – within your trusted ecosystem.
• Deepen relationships: Deliver value-added tools like automated reconciliation and transaction insights, strengthening loyalty among business customers.
• Generate passive revenue: Tap2Local includes an optional revenue share model with minimal operational overhead.
• Identify hidden business activity: Uncover small businesses operating informally within retail accounts, creating opportunities to transition these into formal business relationships.

Every payment accepted through Tap2Local is a deposit captured. Every frictionless experience is a relationship reinforced. And every local need met is a foundation for long-term loyalty.

Real-World Use Cases

Tap2Local is designed for the small businesses you already serve, like:

• Pop-up events and farmers markets: Micro-merchants and seasonal sellers can accept card payments instantly without hardware or lengthy setup.
• Service-based sole proprietors: Service professionals, like painters or electricians can accept payments on the go, with next-day funds availability to maintain cash flow.
• Backup payment option for SMBs: Businesses using traditional merchant services can add Tap2Local as a flexible, low-cost back-up option for contactless transactions.

Implementation Made Simple

Tap2Local is embedded in the Banno Digital Platform and designed for self-service enrollment.

Business users can onboard directly through their banking app – with merchant IDs issued instantly and core data pulled automatically. No sales rep involvement is required. For financial institutions, this means minimal lift and maximum impact.

become the financial hub for small businesses

Small businesses are looking for modern, integrated solutions that simplify payments and improve cash flow.

Tap2Local delivers exactly that – while positioning your financial institution as the center of the local economy. By offering tools that meet real business needs, you can deepen relationships, drive deposits, and build long-term loyalty.

discover the possibilities

Get in touch to explore Tap2local and the Banno Digital Platform.

For more information about Jack Henry, visit jackhenry.com.

^[1]Datos Matrix: Leading U.S. Providers of Digital Small-Business Banking, Datos Insights, accessed December 1, 2025.

^[2]Tip the Small Business Banking Playing Field in Your Favor, Celent, accessed December 1, 2025.