by Julia Morozova
Finextra published an article by Julia Morozova, senior developer at DataArt, explaining why digital payments systems need to create an ecosystem based on newer hub models like payment orchestration platforms. She also explores in detail the many benefits of using payment hubs.
“Over the last few years, the concept of payment services hubs (PSH) has become the leading approach to innovative payment infrastructures. A Payments Hub, sometimes referred to as an ‘enterprise payments architecture’ or ‘payment engine,’ is a solution that can process any payment on a single platform, regardless of instrument type, value of payment, customer, channel, or transaction type.”
“Payment orchestration platforms, also known as a payment orchestration layer, are new business-oriented payment architectures. These proposed architectures address the shortage of technical expertise and provide non-engineering staff with the tools to manage payments platforms with minimal involvement from engineers. It orchestrates the payment workflows with rule-based processing, manages all exceptions, and provides real-time business activity monitoring and information delivery.”
“The key benefit to payment orchestration is its ability to automatically identify best route to manage payments . . . Payment hubs are especially useful in high-performing enterprises that need to standardize and streamline payments across business applications, payment types, and banks.”
“The era of faster payments and open banking solutions is upon us. Financial institutions of all sizes are reconsidering the use of hubs as a realistic option, and they are revisiting project opportunities that align with the need for digital transformation required to compete in today’s market. The case for a Payment Orchestration Layer (POL) is clear. Regardless of how POLs are implemented, their time has arrived.”
The original article can be found here.
