Financial institutions must consider next-generation payment hubs in light of the anticipated growth in real-time payment and open banking use cases.

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Summary

Regulatory initiatives are driving major change in the payment industry, with the development of real-time payment infrastructure and open banking boosted by the expansion of cloud-based technology. To accommodate these changes, payment hubs have experienced a resurgence, and are attracting smaller domestic institutions looking to adopt the solution for targeted modernization requirements as well as modernize their entire payments infrastructure.

Support for the open APIs ecosystem is needed

The regulatory drive behind real-time payments, the implementation of the ISO 20022 standard, and open banking maturity mean that financial institutions are increasingly being pushed to upgrade payment systems to fit with the new market infrastructure. The rise of superapps has been accelerating digital platform convergence, and the momentum is also beginning to build around embedded finance. All sorts of non-banking actors can now obtain a license through a bank’s API to provide access to financial services for their customers, including payments, which will further impact how consumers interact with the financial services providers.

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