By Eric Grover
Two-sided retail-payment networks such as Alipay, Mastercard and Visa enjoy the limelight, enable commerce worldwide, and are taken for granted by billions of consumers and tens of millions of merchants.
Near-invisible payment “hubs” are also two-sided networks, and while not glamorous, are increasingly indispensable for managing and delivering payments.
At their most limited, hubs within a single institution – typically a bank, funnel payments from multiple channels such as branches, ATMs and online, enable sharing common functions and/or provide a single intelligent gateway to external networks and firms. At their broadest, they facilitate any institution paying any other institution by any means. More often than not however they’ve been solving pedestrian internal operational issues.
Read the full article on PaymentsSource here.