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Mastercard has upgraded its Open Banking platform to facilitate automatic switching of direct deposits and recurring bill payments when individuals open or update their accounts.
According to research by EMarketer on mobile account opening, automated deposit switching was identified as the top feature demanded by Americans. However, despite this demand, the process often involves manual paperwork and lengthy waiting times for HR processes to complete.
Integrated directly into a financial institution’s app or website, Mastercard’s Deposit Switch allows consumers to bypass manual paperwork and automatically redirect their payroll deposits to a new or existing bank account.
This feature leverages technology from Mastercard Start Path member Atomic, enabling users to link to their payroll provider without sharing credentials with third parties.
Additionally, the Bill Pay Switch feature empowers users to add or update their payment credentials with merchants and billers they regularly transact with, such as subscription providers, utilities, telecom, and insurance companies. Atomic’s technology facilitates direct authentication with each provider and updates the payment credentials on file seamlessly within the bank app or site.
Silvana Hernandez, EVP at Mastercard, North America, commented: “Digital consumers seek maximum value from their bank accounts, which includes simplified and modernized processes for tasks like rerouting direct deposits and paying bills.”
“We also recognize that Gen Z, in particular, favors debit for everyday expenses, so delivering a secure, seamless online banking experience through open banking connectivity will ultimately drive account loyalty for financial institutions.”
By integrating these features, Mastercard aims to streamline account management processes and enhance the overall banking experience for consumers.
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