As we head into the new year, we are highlighting a few topics that are top of mind for Mastercard Open Banking, and how we see the Open Banking landscape evolving over the next 12-24 months.
At a Glance
- Open Banking adoption continues to gain traction across the globe – This is a result of increased consumer, merchant, and biller appetite, regulations, borrower demand for a digital mortgage experience, and an increase in account-to-account (A2A) payments usage. As momentum accelerates, there is more emphasis on safeguarding consumer information and protecting against fraud in Open Banking.
- A2A and alternative payment methods are increasing in usage all over the world – Open Banking enables a more seamless A2A experience, particularly in verticals like bill pay, disbursements, and recurring payments. However, there are some barriers that are preventing A2A from scaling.
- Looking ahead, we see 4 key themes that are rising in importance in Open Banking – We anticipate that Open Banking will unlock opportunities for consumers and businesses to benefit from their data and allow companies to power next-generation personalized financial services by improving the financial experiences of small businesses, leveraging technology such as Generative AI which powers innovative new use cases (e.g., categorization, security/privacy), integrating closely with Real-time Payments (RTP), and enabling value-added services and personalization with the transition to Open Finance.
Mastercard’s strategy is centered on the trends we are seeing, where we think the Open Banking market is headed, and being a valued and trusted partner to our customers by enabling them to provide enhanced financial experiences to their end users.
What we’re seeing in the market
- Open Banking is on the rise around the world, driven by different tailwinds. Consumers want more automated and digitized ways to move money, to manage their finances (e.g., by viewing their financial data and unlocking actionable insights), and more transparency and control of their data. They are using Open Banking for topping up their investment accounts, funding their wallets, and applying for mortgages. Regulations, Open Banking players pushing forward innovative solutions, and the desire for seamless, enhanced financial experiences are all drivers of Open Banking. In Europe, Open Banking use is expected to double by 2027 and in the UK, 70% of consumers connect their financial accounts directly to tools to conduct financial tasks. In the U.S., 80% of consumers also already link their financial accounts. Open Banking in Australia is still relatively nascent, but 89% of B2B users report using Open Banking today. Brazil has been a trailblazer in Open Finance – there were 4.8B API calls in June 2023 in Brazil, four times the number of calls in the UK. We are cognizant that as Open Banking matures, more and more markets will adopt and accelerate its usage. At Mastercard, market expansion opportunities are evaluated where there is greatest demand, and we will innovate and test concepts in markets that are maturing.
- Regulations are changing the landscape for Open Banking. Open Banking regulations are at different stages in key global markets. While Europe and the UK were some of the first to introduce Open Banking regulation with the Payment Services Directive (PSD2) and later, Payment Services Regulation (PSR), other countries around the world are putting their own regulatory frameworks in place. For example, Canada’s Department of Finance (DoF) and the Financial Consumer Agency of Canada (FCAC) are also working on elements of Open Banking regulation in the country. Several countries in Africa are adopting frameworks for Open Banking, and Saudi Arabia and Bahrain are launching innovative measures to test Open Banking solutions. Mexico and Brazil led the way in Latin America in establishing Open Banking regulations, with a particular focus on Open Finance and leveling the playing field between fintech startups and incumbent banks. We will continue to work across the ecosystem to support our customers, consumers and small businesses in navigating regulatory changes.
- Borrower demand for digital mortgage experiences is increasing. Homebuyers in the U.S. are indicating that they are more interested in leveraging digital channels for mortgages. Those surveyed cited process acceleration (75%) and making the process easier (71%) as the top benefits of a digital mortgage process. Open Banking is key to powering these experiences – it allows lenders to securely collect financial data digitally, conduct more comprehensive assessments of an applicant’s financial health, and make more informed loan decisions. To meet consumer demands and streamline the lending process, Mastercard has collaborated with U.S. government sponsored enterprises (GSEs) such as Fannie Mae and Freddie Mac in connection with certain digital verification of asset, income and employment solutions. These new mortgage solutions are driving more demand for Open Banking and alternative data sources in lending.
- A2A payment flows are becoming a more common way to pay. While there are multiple payment options available to consumers and businesses today (credit cards, debit cards, BNPL, cash, etc.), A2A payments are the second-most preferred payment choice for bill payment in the U.S. and are increasingly being adopted worldwide. On a global level, A2A payments for e-commerce are expected to grow at a 14% CAGR (compound annual growth rate) through 2027. Government-led schemes for A2A are proliferating its usage in countries including India (Unified Payments Interface), Brazil (PIX) and Thailand (PromptPay). Open Banking-powered A2A payments can transform the A2A experience by making it a seamless and secure way to pay – in particular, we’re seeing Open Banking powered payments pick up in verticals like bill pay, disbursements, recurring payments – where paying by ACH (traditional A2A method) has already been popular in the U.S., for example. Recognizing this market demand, we are partnering with players like JPMC and Worldpay in the U.S. to scale A2A for their customers. We are also continuing to explore innovative solutions that would enable the scaling of A2A globally – for example, Mastercard’s approach to Open Banking helps protect the ecosystem to make OB-enabled A2A payments seamless and secure.
- Fraud and identity risk are top of mind. While Open Banking will provide new opportunities, like with any exchange of personal data online, there are also risks. As more people use digital channels for financial experiences, there is the possibility for fraudsters to find new ways to attack businesses and consumers. It is estimated that the worldwide costs of cybercrimes will reach $12T in 2025 and 94% of consumers surveyed say that it’s important that financial institutions keep consumer financial data secure. To ensure consumers feel safe using Open Banking and the experiences it powers, fraud mitigation plays a significant role – for example, leveraging identity verification and device intelligence at account opening, multi-factor authentication at sign in1, and predictive risk signals for payments. At Mastercard, we remain committed to maintaining best-in-class security and data privacy for our Open Banking assets. This is why we are leveraging our rich network of global identity insights and device verification, and integrating them with our Open Banking offering. We believe Open Banking and fraud mitigation will continue to go hand-in-hand as the ecosystem matures.
Spotlight on A2A Trend
What are A2A Payments?
- Account-to-Account (A2A) payments are electronic money transfers from one bank account to another. A2A payments can be initiated in two ways, either as a push payment — initiated by the party making the payment — or as a pull payment — initiated by the party collecting the payment. Many consumers already use A2A payments by simply sending money between their own bank accounts or transferring money to someone using platforms like PayPal or Cash App. The 4 main use cases for A2A are Bill Payments, Me2Me, Person to Merchant (P2M), and Person to Person (P2P):

Growth in A2A is being driven by a number of factors:

However, A2A payments are still experiencing some challenges to widespread adoption:
- Suboptimal A2A checkout process: A2A payment methods have either required consumers to input bank account numbers or login to their bank’s portal for each purchase, which can be time consuming and error prone. In countries where A2A has gotten more traction (e.g., India, Brazil), it has been primarily through QR code which is a suboptimal experience.
- Inadequate consumer purchase protections compared to card: Many A2A payment methods lack the same protections that card payments have, and that both consumers and merchants want.
- Lack of trust: There is a lack of trust from some consumers towards A2A payments, because they have a familiarity with methods like credit and debit payments and are accustomed to their reliability and ubiquity.
- Lack of scaled use by merchants: Merchants face certain risks with traditional A2A payments, including declines due to insufficient funds, unauthorized returns, etc.
How does Open Banking enhance A2A?
Without Open Banking: Traditional A2A is a clunky experience, as consumers need to either initiate bank transfers through their bank account directly or manually enter their banking account and routing number through a suboptimal checkout experience. In some markets, there is also limited transparency in payment settlement timing and risk of payment, for merchants/billers who are offering A2A to their customers. For example, merchants must manually verify customer bank accounts with micro-deposits, and there may be a multiple day delay for a successful A2A payment. Lastly, traditional A2A lacks the rich data insights to verify identity, and to prevent fraud/ non-sufficient funds returns.


With Open Banking: Open Banking makes A2A payments seamless for consumers. Instead of the error-prone process of finding and manually entering account details – consumers can now leverage the latest technology to easily share their bank data. Powered by Open Banking, A2A payments can be made quickly, with extremely rich insights – such as account owner verification, balance checks, risk indicators, tokenization and fraud signals. In any market, Open Banking makes A2A payments easier, faster, and convenient. Additionally, Open Banking can help in the fight against fraud. For example, when a consumer initiates an account-based payment from their bank account, Mastercard enables account validation to confirm account ownership and validate identity details in real-time through Mastercard Open Banking, drawing on the safe exchange of consumer-permissioned data to facilitate frictionless and secure payments.
Illustrative US A2A Payments flow (powered by open banking)2





What will it take to make A2A payments more mainstream?
We believe that there is a positive trajectory for A2A payments. For A2A adoption to scale in use cases like ecommerce, it is important that consumers feel as secure using A2A as they do with other payment methods. Consumers also prefer a more user-friendly and streamlined user experience which removes friction from the A2A journey. Merchants and digital players are looking to provide consumers with a range of payment options, so helping to integrate A2A payments into their existing platforms will improve merchant acceptance and be vital in adoption. Lastly, we believe the scaling of A2A payments will be contingent on value-added services, which leverage consumer data (with consent) to create a secure and seamless payments ecosystem. We believe Open Banking can power many of these enhancements to A2A, to help scale.
Looking Ahead
In addition to A2A, there are a number of market forces and themes that we think will be prominent in the Open Banking landscape over the next 12-24 months. A few are highlighted below –
- There is untapped potential in Open Banking use cases for small businesses. We believe more small businesses will use Open Banking to easily and safely share their banking information, paving the way for an easier lending process and customized financial recommendations to help them with their cashflow. 92% of businesses surveyed believe that it is somewhat to very important to have the latest technology for risk decisioning and credit scoring. Mastercard already offers a comprehensive solution set for small businesses – including real-time business account data, rich cash flow and balance analytics, smarter credit decisioning, etc. and we are continuing to enhance based on what is priority for SMBs.3
- Use cases for AI in Open Banking will continue to evolve, enabling more personalized financial services experiences. For example, Generative AI can power financial assistants that can make investment recommendations, help with data categorization to give a comprehensive picture of finances, enable more inclusive lending processes, as well as power smarter payments systems with predictive capabilities. We believe AI is a powerful tool for Open Banking, and this is why we’ve been leveraging it to categorize and extract insights from transaction data, which feed into downstream AI models that power our payments and lending solutions. We’ve also partnered with players like bunq, the second largest neobank in Europe, to power spending insights for users – leveraging AI. However, we recognize that data transparency, security, and protecting against bias will become even more important, as Open Banking and AI are intertwined to solve for new and innovative use cases.
- Real-time payments (RTP) will accelerate, led by the launch of FedNow in the U.S., and the SEPA Instant Payments Mandate in Europe. RTP has already seen strong success in other countries around the world like PIX in Brazil, UPI in India, etc. For consumers, RTP provides the option for swifter bill payments and near instant payouts, especially important for gig economy workers. Businesses are afforded faster settlements, improved payroll, and reduced disputes due to more efficient reconciliation and refunds. Bank adoption and use of RTP rails in the U.S. are still emerging, due to issues such as coverage/interoperability, irrevocable funds, and fraud risk. However, government pushes for RTP in Europe and the U.S. may catalyze adoption. Open Banking providers have an opportunity to build out use cases that accommodate RTP and mitigate the fraud risks that come with it. For example, Open Banking can provide risk insights and recommendations around the timing of payment and rail choice. In the U.S., Mastercard Open Banking is providing merchants, fintechs and banks rail agnostic risk signals, enabling payment decisioning across payment methods, and supporting consumer choice and flexible merchant usage.
- Open Banking will move towards Open Finance, as more expansive datasets are used to offer more personalized and actionable insights and value-added services for consumers. Open Finance moves beyond Open Banking by covering more financial data inputs (e.g., payroll, insurance, investment/brokerage data). The European Commission is working to establish an Open Finance framework that would outline clear rights and obligations to manage customer data sharing in the financial sector beyond payment accounts. In Australia, the CDR is expanding to Open Finance with non-bank lenders and BNPL product providers set to be brought into scope in early 2025 (with first compliance obligations to commence in mid-2026). We believe regulation and consumer demand will serve as a foundation for the expansion into Open Finance, and will create further innovation for services like employee benefits, wealth advisory, etc. Mastercard is already supporting Open Finance in the U.S. – we have connections to payroll and investment data, as well as mortgage data and auto loan data, and are continuing to expand datasets.
Mastercard’s role in the Open Banking journey
Our vision in Open Banking is driven by many of the trends we’re seeing in the market and enabling enhanced financial experiences for our customers. We remain diligent in advancing our four primary use cases: payments, account opening, lending, and small business, while leveraging the broader Mastercard ecosystem to provide incremental value to our customers. We are enabling an Open Banking future that empowers consumers and small businesses to share their data for their own benefit and allows all parties in the ecosystem to thrive. To learn more about our Open Banking solution set – please click here. You can also see how Mastercard Open Banking creates priceless possibilities for all here.
Footnotes
1 – Strong customer authentication (SCA) under the EU’s Second Payment Services Directive (PSD2), mandates multi-factor authentication (MFA) to prevent unauthorized access (link); MFA is not mandated in the US, but FI’s can implement MFA according to their own discretion; Australia’s CDR governs MFA.
2 – Mastercard partners with companies to enable A2A payments in the US; payments flow shown may be supplemented with additional steps from Partner.
3 – Mastercard US Open Banking for Business solutions (illustrative, not comprehensive).
As governor of the automated clearing house (ACH) Network that moves $80 trillion in funds electronically each year, U.S. payments industry association Nacha has been moving payments forward for 50 years. In recognition of the tremendous, data-driven changes shaping the industry in just the last few years, Nacha updated the categories for its Preferred Partner Program.
Nacha selects Preferred Partners, including Mastercard, whose payments technology offerings align with Nacha’s network advancement strategy. Mastercard Open Banking services are provided by Finicity, which has been a Nacha preferred partner in all partner solutions categories — previously defined as Compliance, Risk and Fraud Prevention, and ACH Experience — since 2020.
Going forward, Mastercard will continue to provide advanced, secure and trusted payment solutions as a Nacha Preferred Partner in three key areas: Risk and Fraud Prevention, as well as new categories Account Validation and Open Banking. These solutions are integral to the future of digital payments.
The power of consumer-permissioned data
Account-to-account (A2A) consumer bill payments and transfers totaled $9 trillion in 2023, and continue to grow at a 7% compound annual rate, according to Nacha, driven by consumers’ choice for fast and convenient payment options. Failed payments and fraudulent charges can be costly and take time to resolve. So it’s critically important to protect A2A payments with insights and analytics that keep risk and cost to a minimum.
Ensuring secure and successful digital payments starts with a robust account validation process to verify critical details like account type, ownership and balance information. These solutions not only help optimize payments, reduce risk and lower costs for fintechs and merchants, they enable the safe and seamless payment experiences that end users demand. Mastercard Open Banking for Payments solutions include:
- Account Owner +: Verify identity by analyzing risk signals, insights and scores related to personal information, device details and IP addresses.
- Account Payment Details: Retrieves account and routing numbers and indicates real-time payment availability.
- Balances: Gathers insights from cleared and available balances and time stamps, with a dynamic recency setting.
- Payment Success Indicator: De-risks payments with predictive insights from a weighted, multifactor settlement risk score.
Mastercard’s advanced global network and decades of experience in risk and fraud prevention can help fintechs and merchants make smarter decisions in a fast-moving digital payments landscape. Ultimately, we strive to help our customers, partners and end users realize all the benefits of next-generation A2A payment technologies with the lowest possible risk.
To learn more about Mastercard Open Banking for Payments, click here.
Today’s consumers’ expectations for their financial interactions are changing. They require a digitally native, seamless, consistent, instantaneous experience with their financial provider right from the get-go. No longer are they willing to wait several days for identity verifications or for microdeposits to clear to start using their account.
Yet, we know that everyday bad actors are finding new ways to break the system. As more people and businesses enter the digital economy, it’s critical that we keep them secure across all touchpoints with their accounts and beyond. Financial Institutions must protect their customers’ accounts from fraud to ultimately drive primacy, grow deposits and encourage top of wallet behaviors, thus helping them recoup the estimated $450 average cost of acquisition.
Open banking is the thread connecting the ecosystem to make account opening faster, secure, and more frictionless.
Here’s a common scenario that financial institutions deal with on a daily basis:
- ‘John Doe’ opened a new checking account with ‘AcmeBank’ and is ready to fund it with another existing account he has with ‘Partnerbank’
- How does AcmeBank know that John is the actual owner of the account at Partnerbank? Should Acmebank proceed with posting the ACH file to the Nacha (ACH) network, letting the transaction go through? If John Doe were a bad actor, and Acme bank allowed the payment to go through without doing appropriate checks, John Doe could move that money elsewhere and AcmeBank could get an unauthorized payment return from ‘Partnerbank’, resulting in fraud losses.
- Similarly, some insurance companies simply ask for account and routing number verification before disbursing funds, not verifying the identity of the receiver. Here, John Doe can impersonate another person, and use his own personal details to re-direct an insurance payout or a payroll disbursement to his account.
What is the ecosystem doing about it?
New rules and guidelines are being published by Nacha – operator of ACH payments – that introduce additional risk management frameworks for ACH senders, as well as recipients. Ecosystem participants such as merchants, ecommerce platforms, lenders, and insurance providers may be required to include account verification and identity verification, multi-factor authentication, velocity tracking and KYC/KYB improvements. Mastercard is a Nacha Preferred Partner for Compliance and Risk and Fraud Prevention with a focus on account validation.
In addition to more thorough fraud checks being conducted by originators, receivers now also must participate in fraud monitoring and flagging to reduce risk. In the above example, Acmebank, the receiving financial institution, will also need to perform additional fraud checks.
What can you do?
Mastercard Open Banking helps financial institutions identify, manage and tackle fraud risk on an ongoing basis. Examples of our solutions include instant account details verification, device and identity verification. When used in conjunction with other customer fraud solutions, they help secure interactions that consumers have with their financial provider.
Last year, Mastercard debuted Open Banking Identity Verification for the U.S. market and continues to invest in additional functionality that leverage our extensive fraud and identity networks. Before initiating a transaction, financial institutions can verify a number of factors, including:
- Confirming account ownership information, including name, address, phone and email, in real-time
- Validating identity profiles and quantifying identity risk
- Examining the risk level of user activity patterns and associations to detect fraudulent behavior
- Verifying device authenticity and capturing signals of device fraud
Beyond Open Banking Identity Verification, Mastercard offers services to streamline account funding, including:
- Account Owner Verification: A one-time API request that returns the account owner(s) name, address, email and phone number for a select account. This verifies that the bank account being linked is owned by the person opening a new account and complements KYC risk mitigation in real time.
- Account Detail Verification: Instantly authenticates and verifies account details, including account and routing numbers, to help mitigate fraud, reduce manual entry errors and maximize confidence in payment transactions.
- Account Balance Check: Easily determines account balance before moving funds to a new account. This ensures that the amount being moved to the new account is available with an accurate, real-time balance snapshot, and reduces costly NSF returns.
- Payment Success Indicator: A score that predicts a transaction’s likelihood to settle for a specific consumer “today” and up to nine days in the future.
Now let’s look the journey again with our solutions:
- Consumer has opened a new checking account with ‘Acme Bank’ and is ready to fund it using existing bank account at ‘Partnerbank’
- Consumer agrees to T&Cs and gives permission through Mastercard’s Connect widget for their bank data to be accessed and shared with Acme bank
- Consumer selects their Partnerbank account and enters banking login credentials (or biometrics where applicable)
- Consumer selects funding account and amount
- Acme bank calls our above APIs in the background to check account and identity details in real-time and proceeds with the processing the payment

Get ahead and get prepared! Check out Mastercard Open Banking developer’s page for technical documentation or reach out to your Mastercard representatives to learn more.
Mastercard provides open banking technology to support leading partners across the ecosystem with safe, flexible and secure lending and payments experiences, partnering with leading players across the ecosystem. Our partnerships with Worldpay from FIS, the merchant solutions business of global financial services technology provider FIS, Zip and J.P. Morgan Payments are driving innovation in billing, lending and payment choice as we scale our global network.
Read more here.
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.
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.
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.
Read more about this innovative new solution here.
Digital payments are everywhere.
Whether we realize it or not, most of us have incorporated technology into our financial lives. According to the Mastercard New Payments Index, which surveyed 35,040 general consumers across 40 markets, 85% of people globally have used at least one emerging payment method in the last year.
Part of the appeal is choice and simplicity. Consumers can buy a new refrigerator with a credit card, digital wallet or using an automatic buy-now-pay-later program. And they can perform most of their financial transactions from anywhere within a few minutes.
Yet enabling consumers to bank and pay with ease is anything but simple. Banks and fintechs must carefully conceive and build payment technology stacks that are agile, user friendly and integrated with their organizations’ complex infrastructures.

Platforms like i2c can help. A global banking and payment processing platform, i2c provides financial institutions and fintechs with “building block” technology to create their own unique consumer and commercial solutions. As a partner, the company relies on Mastercard Open Banking’s consumer-permissioned data to get the right information into the right hands, safely and quickly.
In a recent conversation at the Tech Innovation Roundtable in New York, Jess Turner, EVP, Global Open Banking and API and i2c CEO Amir Wain sat down with moderator Sherri Haymond, Head of Global Digital Partnerships, to explain how their collaboration works and why it matters:
What are the key market drivers that are leading to unprecedented demand for digital payments?
Jess Turner: The pandemic changed the way people interact with services and products, as well as the way they interact with each other. That change accelerated digitization faster than we expected, providing an opportunity for innovation. People expect more from their digital payment experience. And because of that, everything we do at Mastercard —whether it’s direct-to-consumer or business-to-business products—must have a best-in-class user experience.

Jess Turner and Amir Wain in conversation at the Tech Innovation Roundtable, Master Tech Center, New York
How does the partnership between i2c and Mastercard help deliver a best-in-class experience to fintech innovators?
Amir Wain: A significant component to the digital payment experience rests in the hands of banks and fintechs. These financial institutions provide consumers with the ability to bank, borrow and buy what they need. To make those services work seamlessly, a lot of connectivity needs to happen between Mastercard and service providers like i2c. Through our platform, banks and fintechs can access Mastercard capabilities —such as digitization, open banking and APIs—to extend those services to their end users.
How does open banking strengthen i2c’s platform offerings?
Amir: The basic tenets of payments—convenience, security and ubiquity—haven’t changed. Now open banking offers the right tools to keep us up to date with the new underlying digital technology, not to mention the consumer’s desire to interact with their finances differently. Through i2c, our clients can use open banking to help sign on new customers. Like mortgages, opening a bank account has largely been a manual process, one that required a lot of paperwork for banks and customers alike. But with open banking, customers can give permission to share their data digitally.
Jess, can you share other use cases in which open banking creates opportunities?
Jess: In addition to digital payments, another powerful example is that people can use open banking to get a loan for the first time in their lives. These are people who have been credit invisible or considered thin credit, perhaps because they have a low income, or they lack a credit history. Now they can share open banking data –such as bank transactions or rent payments— to prove they are creditworthy. And that could help a consumer qualify for a loan or empower a budding entrepreneur to kickstart their idea or a small business owner to invest in its growth.
Open banking is also precise. At Mastercard Open Banking, we are working with permissioned data that we then must clean and categorize to verify things. So, if someone says they make $12.9 million dollars every year, we can check that quickly and accurately.
What are you seeing in the landscape of digital payments that you are most excited about?
Amir: I look forward to seeing consumers benefit from even more payment choice. Different people need different kinds of products that are relevant to them. Cookie cutter products are a thing of the past. Expanding what you know about the totality of a customer through tools like open banking and AI enables the development of more personalized products.
At i2c, we work with partners like Mastercard to enhance our building block technology that helps banks and fintechs offer differentiated products and elevated customer experiences.
Jess: I agree with Amir. Right now, these building blocks are critical for innovation because the world is becoming borderless. I am looking forward to seeing how our partnership with i2c will make real innovation happen at scale.
Move money with confidence. Our instant account owner and balance verification enables accurate, confident payments. Learn more here.
NEWPORT BEACH, Calif.–(BUSINESS WIRE)–FundingShield, a market-leading, cloud-based firm providing fintech solutions to manage risk, compliance and fraud prevention, has entered a partnership with Mastercard to leverage its open banking platform delivered by Finicity, a Mastercard company. FundingShield provides live, source data-based technology products and SaaS solutions that have been used to secure the funds of over $2.5 trillion in mortgage closings.
FundingShield CEO Ike Suri shared, “FundingShield has over 95% coverage of licensed service providers in the real estate, mortgage, closing and settlement space in our live repository. This partnership with Mastercard allows us to leverage its open banking connectivity of over 95% of U.S. based deposit accounts for consumer-permissioned access to real-time, bank-sourced data to expand our B2B and B2B2C payment verification solutions for clients.“
This partnership expands FundingShield’s offering within the real estate, mortgage and title sector with solutions that protect buyers, sellers, brokers, bank and non-bank lenders, warehouse lenders, and title and settlement entities. More broadly, the firm’s solutions provide risk management surrounding payments to vendors, suppliers, and other outgoing fund recipients in markets where cybersecurity experts estimate cybercrime costs to reach over $10 trillion annually by 2025.
Learn more about this partnership here.
Jorn Lambert joins Fintech Insider host David M. Brear and guests to ask “How does Big Tech shake up the payments industry?”
David, Jorn and guests discuss how partnerships, acquisitions, processes and public fallouts affect the relationship between financial services and Big Tech, how the relationship has developed, the challenges in that relationship and how the industries cross over and influence each other.
What does the future look like for Big Tech and the payments industry?
To learn more and listen to this podcast episode, click here.
Mastercard’s Serenie Gagon, Vice President, Product, Payment Solutions spoke on the Accelerating Shift to Digital Payments panel at the Smarter Faster Payments 2023 conference in Las Vegas.
Gagon said security and ease are always top of mind in any type of payment, and best practice for account-based payments involves “making sure that the person who is connecting the bank account has the authority on that account.”
“The trick with having security and preventing fraud is you don’t want to introduce so much friction that it’s not worth it for a consumer or user to use that payment method or to use that tool. It’s about letting the good guys through, with less friction, and minimizing the challenges that they face.”
Serenie Gagon, Vice President, Product, Payment Solutions
To access the full session link and find out more, read here.
American Banker makes the case for smarter innovation through collaboration
Mastercard is extending its services and technology reach, including deals with JPMorgan Chase, LSEG/Giact, Stax’s CardX and Jack Henry & Associates, enabling Mastercard partners to connect merchants to payments, improve authentication and streamline transaction processing.
“For the partners, the networks like Mastercard bring their technology and processing capabilities, but I think even more crucially they bring that brand and extremely high levels of trust,” said Gilles Ubaghs, strategic advisor for commercial banking and payments at Aite-Novarica Group.
Mastercard’s multi-rail payments approach gives consumers more choice. Digital first and open banking offer an expansion of that choice, while ensuring transactions are easy and safe.
Read about Mastercard’s innovative partnerships at American Banker.