6 in 10 Banks Turn to Payments Hubs to Speed Money Movement

Banks may find that the next phase of payments competition is less about adding new rails and more about making all rails feel like one smooth system.

Drawing on the Global Payments Tracker Series report, “Moving Money Forward: The Power of Payment Hubs,” the story is not just that customers want faster payments. It is that fragmented payment infrastructure is now directly shaping who keeps those customers and who risks losing them.

The report argues that payment hubs are becoming a practical answer to that pressure. A payment hub brings multiple payment types into one unified platform, helping banks route transactions more intelligently and give customers a more consistent experience across ACH, wires, debit and real-time rails. That matters because payment experience is now closely tied to customer loyalty.

Pressure From Digital First Competition

Banks are under growing pressure from digital-first competitors that have trained consumers and businesses to expect speed, transparency and simplicity. Payment hubs, in that context, are presented not just as an IT upgrade but as a way for banks to modernize service, reduce internal friction and compete more effectively.

57% of organizations experience friction in payment processing at least once a week, a sign that payment pain points remain common and frequent.

60% of banks have implemented payment hubs or are in the process of doing so, suggesting this is moving from early adoption to a more mainstream modernization track.

$98.5 million is the average annual loss businesses face due to disruptions and inefficiencies in money movement, underscoring how payment modernization affects costs as much as customer experience.

What stands out beyond those headline figures is how broadly the report defines the value of a payment hub. The customer-facing case is straightforward. Faster transactions, instant confirmations and clearer information on timing and fees can make a bank feel easier to use.

But the back-office case may be just as important.

Hubs can automate workflows, reduce manual intervention, lower maintenance burdens and simplify compliance and fraud controls. That gives banks a path to do more than fix isolated pain points. It gives them a way to shrink technical complexity that has built up over years of operating separate systems for separate rails.

There is also a strategic upside here. Banks have often been cast as slower-moving institutions trying to catch up with FinTechs. There is a more encouraging read. A well-designed payment hub can help traditional banks use their scale, trust and customer base more effectively by pairing those strengths with more modern infrastructure.

Modular, API-based hubs can help institutions add services such as cross-border payments and request-to-pay more easily, without the same level of upfront overhaul.

That leaves the broader takeaway. Payment hubs are not simply about making payments faster. They are about making banks easier to do business with, while also giving operations teams better visibility and control.

In a market where customers increasingly judge financial institutions by the quality of everyday digital experiences, that is a meaningful shift. For banks looking for a practical modernization play, payment hubs may offer something valuable: a way to improve today’s payment journey while preparing for what customers will expect next.

At PYMNTS Intelligence, we work with businesses to uncover insights that fuel intelligent, data-driven discussions on changing customer expectations, a more connected economy and the strategic shifts necessary to achieve outcomes. With rigorous research methodologies and unwavering commitment to objective quality, we offer trusted data to grow your business. As our partner, you’ll have access to our diverse team of PhDs, researchers, data analysts, number crunchers, subject matter veterans and editorial experts.