Mastercard Open Banking Solution Streamlines Subscriptions
Mastercard, a global leader in payment technology, has unveiled a groundbreaking solution, Smart Subscriptions, designed to simplify subscription management through open banking technology, as stated in Fintech Global News. This innovative platform seamlessly integrates into consumer banking applications, offering a host of features to streamline and enhance the subscription experience.
The introduction of Smart Subscriptions comes at a time of increasing demand for streamlined subscription management tools among consumers. With the proliferation of subscription-based services across various industries, there is a clear need for a comprehensive solution that provides both convenience and control to users.
Smart Subscriptions offers a range of advanced features, including individual spend analysis, expenditure categorization, and personalized offers. Leveraging Mastercard’s Subscriptions Control solution, Smart Subscriptions enables consumers to easily manage their subscriptions, including canceling, pausing, and resuming them as needed.
One of the key strengths of Smart Subscriptions is its use of open banking technology, provided by Mastercard’s U.S. open banking arm, Finicity. This technology allows Smart Subscriptions to connect multiple accounts into one central hub, providing users with a unified view of their subscriptions and spending habits.
Moreover, Smart Subscriptions is payment- and network-agnostic, making it easily configurable for any bank to implement with a single API. This flexibility ensures that banks can seamlessly integrate Smart Subscriptions into their existing systems, enhancing the overall banking experience for their customers.
A recent survey conducted by Mastercard revealed significant consumer interest in tools that facilitate subscription management, with 73% expressing interest in such a solution. Additionally, 60% of consumers trust their banks to provide these tools, highlighting the potential for Smart Subscriptions to drive engagement and loyalty among banking customers.
Commenting on the launch of Smart Subscriptions, Raj Seshadri, president of Data & Services at Mastercard, said, «No matter how many services you pay for, managing those recurring subscriptions should be simple and seamless. Smart Subscriptions acts on that insight, meeting the standards for effortless engagement that both banks and consumers demand. And when those standards are met, the true metric of success is loyalty.»
Currently undergoing pilot testing in the U.S., Smart Subscriptions is set to bridge the gap between comprehensive subscription management and personalized banking experiences. The platform is expected to be rolled out in additional markets later this year, offering consumers greater control over their finances and deeper engagement with their financial institutions.