Mastercard launches new Open Banking service in Europe

Wednesday 7 June 2023 10:56 CET | News

Global technology company Mastercard has launched a new Open Banking service in Europe in partnership with Algoan, to accelerate financial inclusion.  

Following this announcement, the new Account Owner Verification product will offer businesses and collaborators the possibility to enable a frictionless experience for their clients, by instantly verifying the identity of the individuals. The solution automates the process of verifying the bank account ownership of the customer through the use of Open Banking technology. 

Mastercard aims to provide clients with efficient and secure Open Banking data services via its collaboration with French-based Open Banking credit decisioning firm Algoan. Furthermore, both of the companies will focus on enabling smart lending decisions through Open Banking in the US. The deal is set to accelerate the procedure of inclusion as well, through advancements in the overall credit decisioning process, starting with the Western European Region. Algoan will use Mastercard’s Open Banking connectivity for enhancing its Credit Insights, Credit Score, as well as its Payment Score services, alongside its categorisation features. 

The account verification process is based on Mastercard’s European Open Banking connectivity. It provides companies and businesses with a match score that denotes the overall strength of a match between the name submitted by an individual for verification and the name held on file by the end user’s financial institution. 

Global technology company Mastercard has launched a new Open Banking service in Europe in partnership with Algoan, to accelerate financial inclusion.

Mastercard’s partnerships and product launches

Mastercard is a global payment-processing corporation that offers its clients and users a large suite of services and solutions. The company had multiple partnerships and product launches in the last couple of months, covering multiple geographic regions around the world. 

In May 2023, Mastercard and Fabrick decided to extend their partnership in order to develop Embedded Finance products and to improve the digitalisation process of businesses across Europe. Mastercard made a minority investment in Fabrick as a part of the deal, purchasing a minority interest of EUR 40 million in fundraisings. 

Earlier in the same month, Pan-European bank UniCredit also expanded its partnership with Mastercard to improve the payments space with the fully equipped card service. Both of the companies were set to increase their tangible actions across environmental and social sustainability. Insights and resources were combined with a particular focus on the incorporation of new projects on common ESG goals, by developing tools that enhance the overall growth of communities, fighting climate change, and the ability to contribute to environmental goals by integrating donations in everyday transactions. 

Mastercard launched its Click to Pay product in collaboration with the payment solution provider Foloosi at the end of May 2023. Throughout this partnership, the embedded Click to Pay service was set to become the preferred payment method for guest checkout for Foloosi’s partners and traders. As part of the launch process, more than 6,000 merchants offered Click to Pay to their customers. 

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Keywords: product launch, partnership, Open Banking, Open Finance, online banking, digital banking, mobile banking, financial inclusion, identity verification
Categories: Banking & Fintech
Companies: Algoan, Mastercard
Countries: Europe
This article is part of category

Banking & Fintech




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