PURCHASE, N.Y.—Mastercard has introduced an “Open Banking for Account Opening” that the company said provides a “foundational set” of open banking products as a core benefit to Mastercard consumer and small business debit issuers as well as consumer prepaid issuers in the U.S.
“The program improves the digital account opening process by verifying account ownership, lowering account abandonment, reducing non-sufficient fund (NSF) returns, and minimizing manual entry of payment credentials,” Mastercard said.
Mastercard reported that a study from Insider Intelligence found that Gen Z mobile banking adoption continues to rise sharply at 12.4% year over year, from 20.7 million in 2020 to hit 47.8 million by 2026.
What’s Being Provided
“To meet the demands of today’s increasingly digital world, Mastercard will provide participating U.S. issuers who opt into the program free access to Mastercard’s Account Owner Verification, Account Detail Verification and Account Balance Check solutions when used to support digital account opening of a Mastercard branded consumer and small business debit and general-purpose reloadable consumer prepaid product,” Mastercard said.
Mastercard Open Banking draws on the “safe exchange” of consumer-permissioned data, leveraging industry standards and machine learning to support a seamless and secure digital account opening experience.
The Capabilities
The company said that with Open Banking for Account Opening, Mastercard issuers can:
- Confidently verify account ownership
- Lower abandonment and inactive accounts through rapid account funding and a more seamless user experience
- Reduce costly NSF returns with real-time balance checks.
General availability of the Open Banking for Account Opening program is expected in the first half of 2024, Mastercard said.
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