Mastercard is partnering with leading players across the ecosystem to scale new open banking-powered solutions that enable more payment choices, empower consumer lending and modernise account-based payments. These companies include Worldpay from FIS and Zip.
Mastercard hopes to bring the promise of open banking to more consumers and small businesses. In turn, this enables them to grant permission to the sharing of their financial data between trusted parties. Trust is vital to the promise of open banking. As more people manage their finances online, the digital landscape is evolving to safeguard against account takeovers and synthetic identity fraud, Consumers in the US and Canada lost $3.2bn from fraudulently opened accounts in 2022. To help, Mastercard is harnessing AI to protect more than 125 billion payment transactions every year.
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As consumers look for more choice in how they pay, particularly for recurring payments, they also expect those payments to be frictionless and secure. To scale account-based payments, Mastercard is working with partners like J.P. Morgan Payments on its pay-by-bank solution, which uses Mastercard’s open banking technology to take the pain out of recurring biller and merchant payments made via ACH. This is from rent and utilities to government and insurance payments.
Mastercard partners with Worldplay and Zip
Mastercard is now partnering with Worldpay so consumers can permit their data to be shared seamlessly between trusted parties and securely pay bills directly from their bank account. Mastercard’s open banking technology removes the friction associated with manually typing in routing and account numbers each time. It also automates consumer onboarding for billers and merchants and reduces the risks and costs of storing bank account information.
Sudev Balakrishnan, chief product officer at Worldpay Merchant Solutions, FIS, said: “We are delighted to partner with Mastercard to leverage their open banking platform in the US to offer secure and seamless account verification services, providing our customers with enhanced payment options and advance open banking around the world.”
Through a new partnership with Zip, Mastercard’s open banking technology enhances the real-time underwriting process of Zip’s lending program. Together, the companies are helping consumers budget for larger purchases that can be paid over time.
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By GlobalDataLarry Diamond, co-founder and CEO of Zip, commented: “Zip is valued for helping customers with managing their expenses and providing access to a financial cushion in times of unexpected expenses. Our partnership with Mastercard helps us continue to deliver a positive payment experience for our customers.”
