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Mastercard plans to introduce new way to open Digital Account


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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.

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