Payment hubs began more than 20 years ago as a way to centralize payments across various payment types and commerce channels. Today, they have evolved and given way to a modular model that promotes interconnectivity between vendors and payments companies. As a result, the financial-services industry has ushered in an era in which services are rapidly deployed to offer consumers highly tailored experiences. The interconnectivity, though mostly positive, has also led to an extremely fragmented industry that can be difficult to navigate. As a result, consumers and merchants often find themselves overwhelmed with options.

This report examines the modular delivery model and explores strategies that help payments companies thrive amid the changes and fragmentation in the industry. Additionally, this report will explore how Big Tech and fintechs continue to leverage interconnectivity in pushing their ecosystems beyond payments. This new era of financial services is here to stay, and it is important for companies to understand the new rules brought forth by the increased connectivity.

PRIMARY QUESTIONS

1. How does interconnectivity benefit the industry?
2. How do fintechs, Big Tech, and traditional FIs coexist?
3. How does a modular delivery model enable the expansion of ecosystems?