
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.