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If you stay up to date with the world of banking, financial technology, or both, you’ve likely come across the term “payment hub.” Perhaps you’ve had experience using or endeavoring to implement a payment hub at your financial institution. While we share the vision behind payment hubs and firmly believe that the banking industry is in need of a long overdue push towards modernization, there are some common challenges brought about by payment hubs that have led to redefining the term and foraging a new path forward on behalf of financial institutions. Before we dive into what we’re doing differently, let’s take a look at what’s currently happening.
What Are Payment Hubs?
At their core, payment hubs were designed to centralize and streamline payment operations for financial institutions. The idea was simple: create a single platform to manage all payment types, connect internal systems, and ensure compliance. A payment hub acts as the middle point for payment streams, offering consistency, control, and scalability. Since the introduction of payment hubs, they have promised to reduce complexity, cut costs, and improve operational efficiency for banks and financial institutions.
Why Did Payment Hubs Emerge?
The concept of payment hubs came about to support financial institutions grappling with a clunky and fragmented payment landscape. Banks faced challenges integrating various payment rails, managing compliance, and improving speed—all while trying to modernize legacy systems that were never built for today’s demands. Payment hubs aimed to bridge these gaps by providing a unified solution for payments across currencies, formats, and clearing schemes.
The goal? Innovation, scalability, and efficiency in an increasingly complex financial ecosystem.
The Problem with Payment Hubs
While the idea of payment hubs was ambitious, their execution has left a series of common challenges in its wake. Most banks adopting payment hubs have faced similar obstacles:
Failed Integrations: Payment hubs promised seamless integration with legacy systems, but these systems—often built on 30 to 50-year-old proprietary mainframe technology—weren’t designed for modernization. Banking Core providers couldn’t innovate their own technology, so expecting third-party payment hubs to succeed has proved to be unrealistic.
Delays and Budget Creep: Many financial institutions found themselves locked into multi-year projects with ballooning budgets. Integrations stretched far beyond deadlines, sometimes taking five or more years—only for the projects to be abandoned entirely. These delays weren’t just financial losses; they sidelined banks from market opportunities, leaving them less competitive.
Morale and Operational Impact: Failed payment hub initiatives often had a demoralizing effect on teams. After investing time, resources, and energy into projects that didn’t deliver, institutions were left frustrated, cautious, and wondering what to do next.
Lack of True Innovation: Payment hubs didn’t live up to their promises of innovation. Many platforms simply layered new interfaces on outdated systems rather than offering true modernization. This approach added inefficiencies instead of solving them.
A Limited Promise to Begin With: The concept of a payment hub was to consolidate multiple payment systems into one platform (a payment is a payment is a payment). They were designed to address the automating of simple transactions such as ACH payments and domestic wires with a promise at some point to include international payments as well.
Why We’re Taking a New Approach
At Mozrt, we’ve seen the same story play out again and again: financial institutions investing heavily in payment hubs, only to walk away with little to nothing to show for it. These experiences have burned the market and created hesitation around adopting new payment technologies.
That’s why we’ve redefined the term “payment hub”—along with the approach and process. Our approach is built for the future, not bound by the failures of the past. Our payment ecosystem, Mozrt Pay, brings everything you need and nothing that you don’t.
Here’s how our philosophy is different:
Minimal Lift, Maximum Impact: Unlike traditional payment hubs, Mozrt Pay doesn’t rely on legacy systems to perform tasks they were never designed to do. Instead, we built a modern, flexible architecture that works with existing systems, allowing them to do what they do best while we handle the innovation.
Speed to Revenue: Financial institutions using our technology can go live in as little as 90 days, drastically reducing time-to-market compared to multi-year payment hub integrations.
Shared Success Model: We don’t just provide the tools; we share in the success. Our revenue-sharing model aligns our incentives with yours, ensuring we’re as invested in your success as you are. This allows us to keep onboarding costs low and bet on ourselves so that you can, too.
True Modernization: Mozrt Pay offers more than payment consolidation. From advanced ledgering to automated compliance and real-time FX, our technology redefines what’s possible for financial institutions, bypassing the need to patch outdated systems.
Beyond the Innovation
Beyond the innovation that we provide, our payment capabilities also offer a unique level of trust and recognition within the financial ecosystem. Mozrt holds its own ETI (Electronic Transaction Identifier) with the Federal Reserve, a distinction shared by only a few payment platforms. This certification means we can process payments, including FedNow, ACH, and wires, on behalf of financial institutions, seamlessly connecting them to the Federal Reserve in real time via APIs.
These capabilities allow financial institutions to extend payment processing windows, reduce reliance on outdated batch processing, and offer payment services seven days a week, ensuring faster, more efficient operations for both domestic and cross-border transactions. This recognition further underscores Mozrt’s role as a leader in modernizing payments for financial institutions.
Understanding the Human Element
We also recognize the toll that failed initiatives have taken on the industry. Banks and their teams have been punished for trying to be innovative and market leading. The impact on morale is as significant as the financial loss, and it’s something we take seriously. Our goal isn’t just to deliver results; it’s to rebuild trust and confidence in the power of financial technology.
The Next Generation of Payment Technology
Today's financial institutions and their customers—especially millennials and Gen Z—demand more than what traditional payment hubs offer. While payment hubs handle basic functions like domestic ACH and wire transfers, Mozrt Pay is a step above. It seamlessly integrates all domestic, international, and alternative payment methods, including instant payments, pay-to-account, pay-to-wallet, and foreign exchange (FX) solutions. Unlike conventional hubs, Mozrt Pay provides real-time tracking, robust security, and automated compliance, all designed to meet the evolving needs of modern businesses and consumers.
What sets Mozrt Pay apart is its ability to deliver a fully operational, end-to-end payment ecosystem in under 90 days. With a focus on flexibility and speed, it combines the best of traditional payment hubs while addressing their limitations. From instant domestic transactions to complex cross-border payments, Mozrt Pay offers a comprehensive, scalable solution that evolves with your needs without the years of development or astronomical costs you’d expect from legacy systems.
By reimagining what a payment hub can do, Mozrt Pay empowers financial institutions to offer cutting-edge, user-centric solutions that drive innovation and efficiency—helping them lead the next era of payments.
While payment hubs have struggled to live up to their promises, we’ve created a new path forward—one that prioritizes simplicity, speed, and scalability without forcing financial institutions to relieve the pain of outdated approaches.
It’s time for a new conversation about payments.
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