Mastercard Introduces New Subscription Management Tool Powered By Open Banking
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Mastercard has rolled out an open banking-driven subscription management tool that banks can integrate into their applications.
According to a survey conducted by Mastercard, 73% of individuals cited that they would love to use a tool that would assist them renew, canceling, tracking, or identifying subscriptions. And 60% have faith in their bank with such a device.
Smart Subscriptions Aims To Meet Consumer Demands For Seamless Engagement
Smart Subscriptions link various accounts to one main hub with the help of Mastercard’s open banking technology, offered by Finicity. The tool can be put into operation with an individual low-lift API.
Bank clients will be able to resume, pause, and cancel their subscriptions. They will also receive personalized offers, expenditure categorization, and individual spending analysis. Mastercard mentioned that banks will also benefit from this technology. It will help banks reduce chargebacks, increase engagement, and drive loyalty.
The system is presently being steered in the United States but it will probably enter other nations this year
The president of data and services at Mastercard, Raj Seshadri stated that irrespective of the number of services a customer pays for, handling that recurrent subscription should be seamless and simple.
He further said that Smart Subscriptions makes use of that insight. It meets the requirements for seamless engagement that both consumers and banks demand. And if those requirements are met, the actual measure of success is loyalty.
Mastercard is the second biggest payment technology company in the world. It provides a collection of payment transaction processing with several other related payment solutions like bookings and travel-related payments. Its head offices are located in Purchase, New York.
The EU’s Concern Stemmed From The Growing Importance Of Non-Cash Payments
Mastercard was developed by the collaboration of many banks and regional bank card organizations in reaction to the BankAmericard provided by Bank of America. Later on, BankAmericard rebranded itself as Visa and is currently Mastercard’s biggest competitor. Before its first public offering, Mastercard was a business owned by over 25,000 financial institutes that offered its branded cards.
Mastercard was investigated by the European Union in 2013. The union alleged that Mastercard charged high fees to dealers to accept cards delivered outside the European Union and high fees associated with premium debit cards.
It was also stated that Mastercard engaged in other anti-competitive practices that may hold back international trade and electronic commerce.
The EU’s competition overseer stated that these charges were a major concern due to the burgeoning role of non-cash payments. Mastercard was no longer allowed to charge fees on cross-border transactions carried out only in the EU.
