FIS Debuts Money Movement Hub to Ease Payment Friction

FIS debuted a tool to help financial institutions link to payment networks and process payments in one place.

The FinTech’s Money Movement Hub is designed for institutions ranging from “super regional” banks to community lenders, according to a Thursday (May 1) press release.

“While consumers’ expectations for payment ease and efficiency have increased, many institutions are struggling to meet these demands using dated and disparate technology, leaving them exposed to settlement delays and security vulnerabilities,” the release said.

The Money Movement Hub helps ease the friction consumers experience by integrating with major payment networks — including instant payment services, wires and ACH — within one solution via a single API, per the release.

In addition, the tool can increase the accuracy of payments, improve liquidity, and help solve security risks, the release said.

“This new solution is a testament to FIS’ dedication to unlocking financial technology that efficiently moves money between the world’s banks, consumers and businesses,” Jim Johnson, co-president of banking solutions at FIS, said in the release. “Our new Money Movement Hub can help to reduce the complexity and costs associated with managing multiple payment channels, enabling funds to flow with speed, accuracy and security throughout the money lifecycle.”

The PYMNTS Intelligence report “The State of Digital Disbursements: Why Consumers Prefer Instant Payments” found there is a surge in demand for instant payments.

“Consumers no longer view instant disbursements as a luxury but as a necessity, particularly in scenarios where rapid access to funds is critical,” the report said. “…This shift is evidenced by a threefold increase in the number of consumers using instant payments since 2018.”

Although consumer preference for instant disbursements has held steady, actual adoption has soared. In addition, security concerns, as well as speed and convenience, have made what’s known as the push-to-debit method the preferred choice for consumers to receive disbursements.

“Consumers aren’t just embracing instant payments; they’re increasingly willing to pay for them,” PYMNTS wrote April 16.

Several factors are driving this shift to what might be called The Urgent Economy, PYMNTS wrote April 17.

“Not surprisingly, in a world where consumers want everything — internet connections, online remodeling quotes, eCommerce deliveries — to happen as fast as possible, speed is the primary driver,” the report said.

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