J.P. Morgan and Mastercard Take Pay-by-Bank Live
October 20 2023 - 6:42AM
Business Wire
- Now available in the U.S. for billers for a variety of
recurring payments including rent, utilities, healthcare and
more
- Verizon planning to pilot offering
- Pay-by-bank is powered by Mastercard’s open banking technology,
supporting the permissioned exchange of safe and secure
payments
J.P. Morgan Payments’ Pay-by-bank solution, which provides
billers with the ability to allow their customers to pay bills
directly from their bank account, is now live. Leveraging
Mastercard’s open banking technology to enhance J.P. Morgan
Payments’ ACH capabilities, Pay-by-bank offers payment choice and
provides a simple, secure and frictionless experience for billers
to offer to their customers.
Verizon is planning to pilot J.P. Morgan Payments’ Pay-by-bank
offering with U.S. customers in the coming months.
“This innovative payment option aligns with our commitment to
providing our customers with convenient and secure payment choices.
We believe that Pay-by-bank will enhance the overall customer
experience, making it easier and more efficient for our customers
to pay their bills,” said Darrell Conn, Executive Director,
Verizon. “We look forward to this partnership with J.P. Morgan and
Mastercard to bring more innovative solutions to our
customers.”
Pay-by-bank is a payment option that gives merchants the ability
to allow their customers to conveniently pay directly from their
bank account using traditional ACH banking rails.
“We are dedicated to enabling our clients to offer their
customers a variety of payment options,” says Max Neukirchen, Head
of Payments & Commerce Solutions, J.P. Morgan. “Our partnership
with Mastercard will allow for easy and secure payments directly
from bank accounts. We are excited for the future as we have a
robust pipeline of biller clients across the U.S. interested to use
our Pay-by-bank offering seeking to digitize their processes and
increase payments efficiency.”
How it works:
J.P. Morgan Payments’ Pay-by-bank offering addresses multiple
pain-points for billers in particular. Billers whose customers
already pay with ACH can enable the Pay-by-bank solution on their
existing payments page. Consumers can then select “Pay-by-bank.”
They will be prompted to choose their bank and agree to securely
share their bank account information through Mastercard’s open
banking platform for recurring payments like rent, utilities,
tuition and account top ups, insurance, and healthcare.
- For consumers, Pay-by-bank elevates the checkout
experience, allowing billers to provide their customers with the
option for a new, secure way to pay. The solution uses the
consumer’s existing authentication protocols with their bank,
including technologies such as biometrics, to retrieve all
necessary information to execute a payment. As a result, they can
securely make payments like rent, utilities, tuition, insurance,
and healthcare.
- For billers, customers that already pay with ACH can
enable the Pay-by-bank solution on their existing payments page.
Pay-by-bank uses Mastercard’s open banking technology, including
Smart Payment Decisioning Tools to analyze the optimal time to
initiate the payments based on the bill payer’s historical
transaction behavior and risk patterns, which protects both
consumers and merchants by helping ensure payments get made and
reducing the risks of returns due to insufficient balance. Benefits
also include securely receiving consumer-permissioned bank data,
which can reduce the likelihood of unauthorized transactions, as
well as eliminating the need to retain customer banking
information.
“Today’s digital consumer seeks choice and value in every
payment interaction,” said Chiro Aikat, EVP, U.S. Market
Development, Mastercard. “They also look to gain more power and
control over their finances, especially for everyday expenses like
monthly bills. Our partnership with J.P. Morgan Payments helps meet
this critical need, providing billers and merchants with a payments
experience that is simple, seamless, and secure for their
customers.”
The launch follows a successful first development stage of J.P.
Morgan Payments and Mastercard’s Pay-by-bank partnership, which
began in November 2022.
J.P. Morgan Payments is a global leader, processing more than $9
trillion in payments daily, operating in over 160 countries and
over 120 currencies.
Pay-by-bank is another innovation in which Mastercard’s Open
Banking technology lets people and businesses around the world
safely share their data to access innovative experiences, from new
ways to pay to secure and frictionless lending. For more than five
decades, Mastercard has used responsible data practices to power
and protect its global network and the broader digital ecosystem.
Mastercard’s Data Responsibility Principles put the individual at
the center of its data-design practices: you own it, you control
it, you should benefit from the use of it, we protect it.
About J.P. Morgan’s Corporate & Investment Bank
J.P. Morgan’s Corporate & Investment Bank is a global leader
across banking, markets and securities services. The world’s most
important corporations, governments and institutions entrust us
with their business in more than 100 countries. With $29.7 trillion
of assets under custody and $638.1 billion in deposits, the
Corporate & Investment Bank provides strategic advice, raises
capital, manages risk and extends liquidity in markets around the
world. Further information about J.P. Morgan is available at
www.jpmorgan.com.
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231020573437/en/
Contacts: JP Morgan, Richard Hillary
richard.hillary@jpmorgan.com
Mastercard, Raul Lopez Raul.Lopez@mastercard.com
MasterCard (NYSE:MA)
Historical Stock Chart
From May 2024 to Jun 2024
MasterCard (NYSE:MA)
Historical Stock Chart
From Jun 2023 to Jun 2024