Posted by Kristen Jason on 08 Nov 2022
*Originally published on CUInsight.com
“Payment services hub” or “payment hubs” used to mean a consolidation of systems supporting Fedwire and ACH processing, which helped large financial institutions bring together their Commercial and Retail payment operations. Payment systems were historically introduced one at a time as new payment methods became available, giving rise to silos by workstream for operations such as product management, customer service, compliance, etc. for each payment type. An example of this is check processing, which began in the 1950’s.
Today, “payment hub” has expanded to include new real-time payment rails such as TCH RTP® network, the FedNowSM Service, and reverse debit networks such as Visa Direct and MasterCard Send. Celent refers to payment hubs as ‘where a single solution can process all payments on a single platform’.
Here is how the payments services hubs of today are different:
Today, payment hubs are being used around the world at hundreds of banks, and most of the top 30 U.S. banks have at least one payment hub. They are a key component of payment modernization, and widen the gap between bank and credit union capabilities.
Learn more about payments hubs in Payment Services Hub Explained.
Alacriti’s centralized payment platform, Orbipay Payments Hub, provides innovation opportunities and the ability to make smart routing decisions at the financial institution to meet their individual needs. Financial institutions can take full ownership of their payments and control their evolution with ACH, Wire, TCH’s RTP® network, Visa Direct, and the FedNowSM Service, all on one cloud-based platform. To speak with an Alacriti payments expert, please contact us at (908) 791-2916 or info@alacriti.com.
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