Mastercard is looking to tailor payment preferences geared towards Gen Z customers more efficiently with its new One Credential launch.
The solution enables consumers to choose a payment option – debit or credit card, instalment-based and prepaid payments – through a single digital gateway that allows them more access and flexibility when making transactions.
One Credential seeks to provide cardholders with more control by allowing them to link existing payment methods and more choice through an expanded payment interface for their personalised needs.
Mastercard outlined an example of how One Credential operates, stating: “Imagine a financially independent consumer in her 20s named Erica. With One Credential, Erica can tailor her payment preferences, so they’re optimised for her household expenses.
“She can choose to pay for daily expenses under $100, like groceries and fuel, from her checking account; charge expenses over $100 to credit; and pay for the occasional larger purchase via installments. Erica can set her preferences online or in an app, with full control over how each transaction is funded and a holistic view of her spending.
The solution will be rolled out to small businesses to access more funding options for their customers via a single digital integration. Relevant businesses will also benefit from an accelerated payment journey, enhancing revenues due to more payment options provided.
Six Mastercard customers have already begun to roll out the One Credential solution to its customers, including Adelaide Banking Group, Episode Six, Galileo Financial Technologies, i2c Inc., Lithic, Marqeta and Wio Bank.
“Today’s consumers expect to be in the driver’s seat,” said Jorn Lambert, Chief Product Officer at Mastercard.
“That’s what sparked One Credential. It gives people an innovative way to pay that’s truly personalised to them. While Gen Z may be leading the way, the desire for personalisation spans Gen Z: Digital natives who crave choice and control.”
With a key focus on giving young consumers more payment flexibility and control over their credit, Mastercard revealed that One Credential is serving the ever-evolving payment needs of Gen Z customers.
The global payment leader’s research outlined that Gen Z customers’ payment appetite is largely digital, with 65% preferring to manage this all in one place. They also tend to spend more than save on purchases, prioritising personalised solutions and needing more financial educational tools than their predecessors.
With some of the lowest average credit scores of all generations in the US, 70% of Gen Z consumers are actively seeking ways to increase their credit score, but more than half don’t know how.
Mastercard’s One Credential aims to solve this by providing instalment payments to enable young customers how and when they pay. This is backed by a structured credit and debit infrastructure, tailoring solutions to Gen Z payment needs.
John Mitchell, CEO of Episode Six, commented on integrating One Credential: “At Episode Six we are proud to integrate Mastercard’s One Credential into our offerings. This state-of-the-art technology not only enhances security but also provides our customers with unparalleled simplicity and customization in their payment methods.
“Our mission is to continually innovate and differentiate ourselves by meeting the varied needs of our customers, and ultimately today’s discerning consumer.”
