Three new companies are now using Mastercard Open Banking Protect

Aion, DiPocket and Modulr have all signed agreements to use the Protect solution, which is a key component of Mastercard’s Open Banking Solutions portfolio of applications and services to underpin, enable and safeguard the open banking ecosystem across Europe.

PSD2 legislation in Europe allows TPPs to access bank accounts, with a customer’s consent, to provide new products and services; however, the account holding institutions remain liable for the funds. It is therefore important for financial institutions quickly to verify open banking requests from TPPs, with whom they may have no prior relationship, and that robust systems are in place to detect warning signs of potential fraud early on.

Mastercard Open Banking Protect is designed to to combat fraud in open banking and increase the confidence of financial institutions when approving third-party requests. It offers two services:

• Licence and certificate validations – swift verification of TPP certification and registration status against all relevant directories.
• Fraud Monitoring – uses network-level data on a given TPP to spot trends and changes to regular activities through behaviour monitoring in order to stop potentially fraudulent requests.

The partners announced today include a wide range of use cases – from a digital bank powered by AI (Aion), to a wearable pre-paid tech provider (DiPocket), and the payments as a service alternative to wholesale and commercial transaction banking for businesses (Modulr).

All of these companies are collaborating with Mastercard through Open Banking Protect to identify fraud in a new ecosystem and better protect their business and their customers against unauthorised third-party providers.