JP Morgan and Mastercard’s new Pay-by-Bank solution goes live in the US
JP Morgan and Mastercard’s new Pay-by-Bank solution is now available to billers in the US with Verizon expected to launch a pilot within the coming months.
JP Morgan and Mastercard launch Pay-by-Bank in US
The solution leverages Mastercard’s open banking technology to enable consumers to share their financial data to pay third parties directly from their bank account using traditional ACH banking rails. This process eliminates the need for customers to manually enter their banking information when completing online transactions, while billers no longer need to risk storing sensitive financial data.
Pay-by-Bank is also integrated with Mastercard’s Smart Payment Decisioning Tools suite, which through the application of data analytics and machine learning can determine the best time to initiate payments in order to reduce the risk of returns due to insufficient balance and minimise the potential for payment failures.
It also promotes heightened payment security, as it requires consumers to engage with their existing authentication protocols, such as biometrics, in order to complete transactions.
“Today’s digital consumer seeks choice and value in every payment interaction,” comments Chiro Aikat, EVP, US market development at Mastercard. “They also look to gain more power and control over their finances, especially for everyday expenses like monthly bills.”
JP Morgan and Mastercard first announced the solution in November last year and have piloted the service with a limited number of billers and merchants in the US since then.
Max Neukirchen, head of payments and commerce solutions at JP Morgan, says the firms now have “a robust pipeline of biller clients across the US interested to use our Pay-by-Bank offering seeking to digitise their processes and increase payments efficiency”.
One of these biller clients has now been revealed to be the telecommunications company Verizon, which is expected to pilot the solution with its US customers “in the coming months”.
