Unpacking The Modern Payment Stack: What Matters Most for Banks

Payments are rapidly shifting from batch-based and siloed to real time and open. At the center of this shift is the modern payment stack that is offered by technology vendors, a layered infrastructure built for agility, scale, and openness. Hallmarks of these products are APIs, cloud-native deployment, and composability that support the needs of banks by enabling real-time payments, embedding compliance directly into processing, and creating ecosystems for developers to build new products, services, and connections. 

For banks, the case for modernization must be sold as part of improving their products. Their customers now expect instant, always-on access to money as regulators push data sharing and open banking. Meanwhile, fintechs, networks, and aggregators are building competitive products centered on openness and speed. The legacy systems used by banks can remain stable and solid, but they cannot deliver support for the next era of payments. 

This report defines each layer of the modern stack, explains why these components matter, and connects technological benefits to strategic business outcomes. It also outlines specific actions technology leaders can undertake as they begin looking at payment modernization rooted in a modern payment stack.

Key questions discussed in this Tech & Infrastructure research report: 

• What defines a modern payment stack, and how does it differ from legacy infrastructure?
• Why do APIs, event-driven architecture, and developer orientation matter for banks?
• What business outcomes can banks expect from payment modernization?
• What should technology leaders do to translate modernization into measurable returns? 

Companies Mentioned: 

Akami, Financial Data Exchange (FDX)