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Mastercard has joined forces with ICBA Payments, the payments subsidiary of the Independent Community Bankers of America (ICBA), to enhance community bank card programs and modernize payment services.
Empowering Community Banks with Digital Payment Innovation
Announced on March 17, this strategic alliance will provide ICBA member banks with cutting-edge payment solutions, enabling them to offer secure, cost-effective, and innovative financial services to their customers.
Jacob Eisen, CEO of ICBA Payments, highlighted the broader impact of this collaboration:
“Today, we’re not only upgrading payments but also investing in the future of our local communities. By partnering with Mastercard, we’re equipping our member banks with innovative, secure, and cost-effective solutions that empower them to support and grow the neighborhoods they serve. Together, we are paving the way for stronger local economies and enduring customer relationships.”
Key Upgrades to ICBA’s Card Programs
As part of the transition, ICBA Payments will upgrade its sponsored card programs to Mastercard, incorporating:
- Contactless payment technology for faster, more convenient transactions
- Tokenization for digital wallets, enhancing security for mobile payments
- 8-digit Bank Identification Numbers (BINs) and business BIN optimization to meet industry standards
In addition, Mastercard will take charge of cardholder communications and marketing, delivering customized joint marketing assets to help boost cardholder engagement for community banks.
Strengthening Local Financial Institutions in the Digital Economy
The partnership underscores Mastercard’s commitment to local financial institutions, ensuring they remain competitive in a digital-first banking environment.
Marie Elizabeth Aloisi, Executive Vice President of U.S. Market Development at Mastercard, emphasized this mission:
“At Mastercard, we believe that the heart of economic progress lies in the strength of local communities. This is where we share like-minded values with ICBA Payments, working to bring more people and businesses into the digital economy.”
Bridging the Digital Gap for Community Banks
This initiative comes as small and medium-sized businesses (SMBs) increasingly turn to community banks and credit unions (CUs) for personalized financial services.
However, research highlights that while 49% of rural SMBs prefer local financial institutions, they often find digital banking services lacking compared to larger banks.
To stay competitive, community banks and credit unions must invest in modern payment infrastructure, fraud prevention, and digital banking solutions that align with evolving customer expectations.
A Step Toward the Future of Local Banking
By leveraging Mastercard’s global expertise and ICBA’s commitment to community banking, this partnership is set to strengthen local financial institutions while enhancing digital banking experiences for businesses and consumers alike.
With this strategic upgrade, ICBA Payments’ member banks can deliver more seamless, secure, and innovative payment services, ensuring they remain a vital force in driving financial inclusion and economic growth in local communities.
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