Mastercard enables further Open Banking deposit capabilities

credit: Shutterstock
credit: Shutterstock

Stepping up its usage of Open Banking, Mastercard has partnered with Atomic to deliver deposit switch and bill pay switch payment services for digital accounts. 

Mastercard customers will be able to access these Open Banking functions by switching their direct deposits and updating their recurring bill payments by opening a digital account or updating an existing account. 

Deposit switch enables customers to automate the deposit payroll process by connecting to payment systems in the US. Embedding Atomic’s TrueAuth technology, this process can redirect deposit allocations in real-time through a singular approach. 

Furthermore, leveraging the TrueAuth technology, customers can connect with their payroll provider without having to share credentials for third parties in a bid to maximise identity and fraud prevention, whilst financial institutions can also benefit by growing deposits at an efficient rate. 

The second Open Banking solution in partnership with Atomic, bill pay switch, will enable payments from services such as subscriptions, utilities, insurance, etc., to be streamlined more effectively. 

Bill pay switch, also powered by TrueAuth technology, authenticates payments from each provider to update the payment credential on file, removing the friction typically associated with this process. 

Jordan Wright, Co-Founder and CEO of Atomic, said: “At Atomic, we’re dedicated to refining the banking experience, ensuring that it’s as seamless and intuitive as possible.

“By collaborating with Mastercard we’re not just alleviating common pain points, but also empowering consumers to manage their finances more effectively. 

“This partnership allows us to leverage our advanced payroll and merchant connectivity to enhance user experiences. Our goal is clear: to help people manage their money better by providing smarter, more connected financial solutions. These tools are a testament to our commitment to innovation and the betterment of the financial journey for all consumers.”

According to an Emarkerter report highlighted by Mastercard, it revealed that automated deposit switching was the demand customers wanted the most when it pertained to mobile account opening. 

Whilst acknowledging friction involving this process, BAI’s research outlined that up to 80% of banking executives at financial institutions are looking into opportunities to grow deposits as it continues to be one of the most pivotal aspects of the mobile banking industry. 

Mastercard has been one of the more prominent adopters of Open Banking technology since its inception in 2017. 

The payment network recently partnered with Dutch neobank Bunq to supply the latter with its Open Banking APIs to provide its customers with greater financial clarity and controls. 

Speaking on its latest Open Baking venture, Silvana Hernandez, Executive VP of  Mastercard North America, commented: “Digital consumers are looking for maximum value from their bank account, which includes simplified and modernised processes for tedious tasks like rerouting direct deposits and paying bills. 

“We also know that Gen Z in particular is leaning into debit as a preferred payment for everyday expenses, so providing a secure, seamless online banking experience through open banking connectivity will ultimately help drive account primacy for financial institutions.”