Mastercard plans to introduce new way to open Digital Account

Mastercard plans to introduce a new way for people in the U.S. to open digital accounts for debit cards and prepaid products.

Open Banking for Account Opening Program

• Description: This program will use open banking methods to make opening accounts easier and safer.
• Expected Launch: It should be available to everyone in the U.S. by the first half of 2024.
• Beneficiaries: The program will be useful for Mastercard’s debit card issuers and prepaid card issuers in the U.S.

Improving Account Opening Process

• Purpose: The program aims to enhance the process of opening digital accounts in several ways:
  • Verification: It will make sure that the person opening the account owns it.
  • Reducing Abandonment: People leaving the process without completing it will be lessened.
  • Preventing Insufficient Funds: It will check account balances in real-time to avoid overdrawing.
  • Simplifying Data Entry: People won’t have to manually enter their payment details.

Responding to Trends

• Rise in Mobile Banking: More and more young people are using mobile banking. By 2026, around 47.8 million of them are expected to use it.
• Catering to Digital Consumers: Many people prefer the convenience of opening bank accounts online.

Mastercard’s Offerings

• Free Access: Mastercard will provide certain solutions for free to U.S. issuers participating in the program.
• Supported Products: These solutions will assist in opening digital accounts for Mastercard-branded debit and prepaid products.

Technology Behind the Program

• Data Usage: The program will use data that consumers agree to share, following safety standards.
• Machine Learning: It will also utilize machine learning technology to make the account opening process smoother.

Program Evolution

• Previous Launch: This program builds upon Mastercard’s earlier solution launched in May.
• Coverage: Mastercard’s open banking technology, through its Finicity branch, now reaches 90% of the company’s deposit accounts in the U.S.

By offering these new services, Mastercard aims to simplify and enhance the process of opening digital accounts for its users.