Mastercard provides open banking technology to
support leading partners across the ecosystem with safe, flexible
and secure lending and payments experiences
Mastercard is partnering with leading players across the
ecosystem, including Worldpay from FIS, the merchant
solutions business of global financial services technology provider
FIS, and Zip, a buy now, pay later firm, to scale new open
banking-powered solutions that enable more payment choice, empower
consumer lending, and modernize account-based payments. Mastercard
is bringing the promise of open banking to more consumers and small
businesses, enabling them to permission the sharing of their
financial data between trusted parties.
The promise of open banking cannot be realized without trust. As
more people manage their finances online, the digital landscape is
evolving to safeguard against account takeovers and synthetic
identity fraud, which can lead to significant financial losses. In
fact, consumers in the U.S. and Canada lost $3.2 billion from
fraudulently opened accounts in 2022. To help, Mastercard is
harnessing AI to protect more than 125 billion payment transactions
every year, underpinned by its data responsibility principles: you
own your data, you control it, you should benefit from the use of
it and we protect it.
Easing the burden of online bill payments
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 – from rent and utilities to government and
insurance payments.
To further scale and modernize payments, Mastercard is now
partnering with Worldpay so consumers can permission their data to
be shared (not stored) 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. In
addition, Worldpay will tap into Mastercard’s account owner
verification capabilities to support merchants in the onboarding
process.
"We are delighted to partner with Mastercard to leverage their
open banking platform in the U.S. to offer secure and seamless
account verification services, providing our customers with
enhanced payment options and advance open banking around the
world,” said Sudev Balakrishnan, chief product officer at Worldpay
Merchant Solutions, FIS.
Driving responsible lending and increasing access to
capital
Through a new partnership with Zip, Mastercard’s open banking
technology, provided by its U.S. open banking arm Finicity, will
enhance the real-time underwriting process of Zip’s lending
program. Together, the companies are helping consumers more easily
budget for larger purchases that can be paid over time1.
“Zip is valued for helping customers with managing their
expenses and providing access to a financial cushion in times of
unexpected expenses,” said Larry Diamond, co-founder and U.S. CEO
of Zip. “Our partnership with Mastercard helps us continue to
deliver a positive payment experience for our customers.”
When it comes to lending, small businesses also face obstacles
getting access to capital. In the U.S., 52% of small businesses say
their financing needs aren’t met. Earlier this year, Mastercard
added advanced analytics to its open banking services to help
lenders manage their risk profiles, while adding inclusive credit
models for small business loans, including ongoing monitoring and
expansion of credit lines.
“Open banking solutions can speed up the lending process so
consumers and SMEs are able to get quick access to funds they need
and get back to running their businesses and completing purchases,”
said Daniel Keyes, senior analyst at Javelin Strategy &
Research. “It’s particularly important that SMEs and consumers are
only given funds that they’re in a position to pay back, and open
banking can help make sure underwriters have access to the
financial information needed so neither ends up overextended.”
Scaling open banking across the globe
Mastercard is co-innovating with partners across the ecosystem
to establish broad connectivity and data services to support
customers, including access to more than 95% of deposit accounts in
the U.S. and 3,000 banks across Europe. Mastercard also recently
announced a partnership with European-wide investment platform Saxo
Bank, which enables Saxo Bank customers to seamlessly add money to
their investment accounts through an embedded platform using open
banking.
“We’re accelerating our open banking connectivity across the
U.S., Australia and Europe, leaning into the breadth of
Mastercard’s global network, expertise in data and privacy, and
trust of our brand,” said Jess Turner, executive vice president,
Global Open Banking & API at Mastercard. “We’re providing more
payment choice, redefining how identity is established and
authenticated, and opening doors to tailored solutions that will
revolutionize financial experiences.”
Mastercard at Money20/20 USA
Join Mastercard at Money20/20 in Las Vegas from October 22-25 to
experience how Mastercard is driving the future of finance through
simple, safe and smart solutions. Throughout the show, the
Mastercard booths (#6800 and #6910) at the Venetian Convention
& Expo Center will showcase interactive demos highlighting open
banking and payment innovations including AI, fraud prevention and
more.
About Mastercard (NYSE: MA)
Mastercard is a global technology company in the payments
industry. Our mission is to connect and power an inclusive, digital
economy that benefits everyone, everywhere by making transactions
safe, simple, smart and accessible. Using secure data and networks,
partnerships and passion, our innovations and solutions help
individuals, financial institutions, governments and businesses
realize their greatest potential. With connections across more than
210 countries and territories, we are building a sustainable world
that unlocks priceless possibilities for all.
www.mastercard.com
1 Loans through Zip Pay Anywhere and Zip Web Checkout (including
any "powered by Zip" loans) are originated by WebBank, except for
Zip-originated loans in Colorado, Massachusetts, Maryland and
Nevada. All loans are subject to credit approval.
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version on businesswire.com: https://www.businesswire.com/news/home/20231017363193/en/
Jen Langione Global Communications +1 (917) 408-2941
jen.langione@mastercard.com
Jenna Saper North America Communications +1 (914) 249-1069
jenna.saper@mastercard.com
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