MASTERCARD OPEN BANKING PLATFORM
Open Banking for Payments
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Intro
Challenges
How it Works
Solutions
Benefits
Account verification Verify account details, balance and owner
Payment details Determine optimal payment method and date for payment success
OPEN BANKING FOR Payments
Next-generation account-to-account payment solutions offer more inclusion and choice. We're digitally transforming the payment experience with accurate data, analytics, scoring and insights into consumer-permissioned financial account data.
Registration
DEMO
Adding Billers
One-Time Payment
Auto Pay On
Recurring Payments
Conclusion
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YOY growth in same-day ACH payment volume**
82
%
of consumers are ready to share personal data for better and customized services*
67
Debit card and ACH payments represent about $5 trillion in person-to-merchant (P2M) payment volume in the U.S.**
5
$
* RFI Consulting - Mastercard Affluent Millennials Report 2020 ** The Fed - The 2019 Federal Reserve Payments Study
PAYMENT OPPORTUNITIES
Merchants and other financial service providers are adapting to a faster, more intelligent, digital-first environment.
The Challenges
trillion
It's the beginning of the month—time for Amber, like millions of other people, to make her monthly rent payment. Mastercard open banking helps her securely and simply connect her rental property with her financial data for a smart, simple and fast payment experience.
OPEN BANKING FOR PAYMENTS
See how it works
Amber receives a text message from her property manager letting her know that she can save time and effort by setting up autopay for her rent.
EMPOWERING EXPERIENCES
Amber follows the link to her property manager's web app, where she's presented with the option to autopay directly from her bank account or from a debit or credit card. She selects “Pay with bank account” to begin.
The merchant enables this seamless user experience for its customers by integrating Mastercard’s Connect data permissioning widget into its services, while integrating with our top-tier API developer portal.
Proofpoint
Amber is informed that the merchant app, RentPay, will securely connect to her bank account.
Mastercard is in the top 1% of trustworthy brands.*
*Brand Asset Valuator BAV 2022
Amber begins by searching for her bank, Partnerbank. It is conveniently shown on a tile and she selects it.
The user interface of the Connect widget can be configured to align more closely with your brand so you can deliver a comfortable and easy permissioning experience for your customers
SECURE, QUALITY CONNECTIONS
Amber logs in, and a secure connection to Partnerbank is established.
Connect supports two-factor authentication (2FA), a more secure method of connecting accounts, by sending a verification code to Amber's phone number in addition to her login information.
Amber enters the code she received on her phone.
Mastercard continues to lead the market with direct API connectivity. Our tokens provide access to the highest-quality data, enhance security, and enable more persistent data access for longer periods of time. Through both direct and legacy connections, we maintain extensive account coverage to enable more of your customers. > 95% of consumer accounts > 90% of business accounts
ACCOUNT LINKING
Amber selects the account that she wants to use to pay for rent. RentPay, on behalf of the merchant, can verify the account number, routing number, balance and Amber's ownership of the account with the right address through the Mastercard open banking platform.
Mastercard open banking data integrity services perform tens of millions of data attribute quality checks per month.
Next, Amber is invited to add her debit card as an optional payment method. She reads an explanation of the different instances where either her bank account or debit card will be used to make her rent payment.
She can enter her card information manually, use her digital wallet or even take a photo of her card with her smartphone's camera to auto-populate the text fields.
Once her details are populated, she taps "Add Card."
Success
Once Amber adds her debit card on file, RentPay now has the added decisioning power of Mastercard’s open banking data analytics, scoring and insights to optimize processing each of Amber’s payments. The optimal method and time period are chosen, when she's most likely to have funds available.
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Mastercard’s open banking platform empowers consumers and small businesses with data control, access, transparency and security.
Once his details are populated, he taps “Add Card”
MASTERCARD OPEN BANKING
With just a few steps, Amber’s payment experience is wrapping up. She verifies the two payment methods she added and the payment amount. RentPay recommends that she make her first monthly payment as an ACH transaction on an optimal day. She agrees and authorizes the transaction.
MASTERCARD SMART PAYMENT DECISIONING TOOLS
How is RentPay able to effectively recommend the optimal payment method and day? This is the power of the Mastercard open banking platform. In the background, we're leveraging advanced analytics and machine learning to maximize payment success.
Payment Success Indicator (PSI) uses data to provide merchants with dynamic, real-time intelligence that produces a score indicating the likelihood of payment success over a period of ten days.
Payment Success Indicator (PSI) uses data to provide merchants with dynamic, real-time intelligence that produces a score evaluating the likelihood of payment success over a period of ten days to help assess the optimal timing for payment initiation.
Payment Routing Optimizer
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Then, our Payment Routing Optimizer (PRO) leverages the score from our PSI as an input. It also considers risk, speed and cost between payment methods (rails): From this analysis, an optimal payment date and rail recommendation is generated for the merchant.
Same-day ACH Next-day ACH Debit card
• Same-day ACH • Next-day ACH • Debit card
In this example, Amber had a sufficient balance in her checking account today. PSI and PRO work together to analyze historical spending trends and recommend an immediate same-day ACH payment to make sure Amber’s transaction settles successfully. The risk of a returned ACH payment and potential costs have been mitigated. With minimal friction, the payment is made and Amber moves on with her day.
RECURRING PAYMENTS
Next month, the recurring payment will happen automatically. Amber will receive a push notification. This is totally customizable. You can empower customers like Amber to choose the payment type, its time frame or even cancel the payment. When integrating the Mastercard API endpoints, app developers can decide what the subsequent month’s payment experience will look like.
By fundamentally improving the payment experience and solving real-world challenges, we're offering more ways to pay with greater speed, convenience and confidence.
Improve customers’ payment experiences Provide peace of mind to customers by allowing them to add more than one payment option and process transactions in a way that optimizes the likelihood of success
Verify account details Seamlessly verify ACH details to ensure successful payment and stay compliant with the Nacha WEB debit rule
Reduce returns Leverage Payment Routing Optimizer and Payment Success Indicator to improve payment success rates, reduce risk of returns, and optimize cost and speed
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Reduce fraud Verify account owner and address to reduce the risk of Account Takeover Fraud
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CONSUMER BENEFITS
Consumers like Amber win, too:
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They are empowered with the control, access, security and transparency of their own account data
Fast, simple customer experiences
