Mastercard partners with J.P. Morgan

Monday 23 October 2023 08:51 CET | News

Mastercard has partnered with J.P. Morgan in order to launch the Open Banking-powered Pay-by-bank service that offers secure payment exchange for US-based clients.

Following this announcement, J.P. Morgan Payments’ Pay-by-bank solution will offer firms and companies the possibility to allow their clients to pay bills directly from their bank accounts. The product was developed by leveraging Mastercard’s Open Banking technology, in order to optimise J.P. Morgan’s ACH capabilities. 

Pay-by-bank will also provide payment choices and a simple, frictionless, and secure experience for billers to deliver to their customers. According to the press release, Verizon plans to pilot the services with US-based clients in the following months.

Mastercard has partnered with J.P. Morgan in order to launch the Open Banking-powered Pay-by-bank service that offers secure payment exchange for US-based clients.

More information on the Pay-by-bank launch

Billers whose clients already pay with ACH will have the possibility to enable the new Pay-by-bank service on their existing payments page. After selecting the `Pay-by-bank` options, customers will be automatically prompted to choose their bank and agree to share their account information through Mastercard’s Open Banking platform in a secure and fast manner. The process can take place for recurring payments like utilities, rent, tuition, insurance, healthcare, or account top-ups. 

Pay-by-bank was designed to optimise the checkout experience of customers, allowing biller to provide their users with the option for a new, secure, and efficient payment method. The product uses the existing authentication protocols of clients with their bank, including technologies such as biometrics. This will give firms the possibility to retrieve all necessary information in order to execute the transaction. 

In addition, by using Mastercard’s Open Banking technology, including the Smart Payment Decisioning Tools, Pay-by-bank will be allowed to analyse the optimal time to initiate the payments based on the bill payer’s historical transaction behaviors, as well as its risk patterns, in order to protect both users and traders. This will focus on reducing the risk of returns due to insufficient balance and making sure the payments get made safely. Furthermore, the solution will prioritise the process of reducing the likelihood of unauthorised transactions, as well as eliminating the overall need to retain user banking information. 

Mastercard’s recent partnerships and developments

Global technology company in the payments industry, Mastercard offers its customers and clients multiple services and solutions, aiming to connect and develop an inclusive and secure digital economy that benefits both users and financial institutions. The firm had multiple collaborations and product launches in the last couple of months, covering several geographic areas around the world. 

In October 2023, the company announced its partnership with Worldpay from FIS and Zip in order to scale additional Open Banking-powered services and to support collaborators with secure, efficient, and flexible lending. Throughout this strategic deal, Mastercard aimed to provide more payment choices, as well as increased customer lending and overall modernised account-based payments. 

In addition, the company focused on offering Open Banking products to more clients and small businesses, in order to allow them to share their financial data and information between trusted parties. 

Earlier in the same month, Mastercard collaborated with Remitly, in order to expand the access to cross-border payments and remittances to the latter’s US-based customers and users. Following this announcement, Remitly was expected to integrate Mastercard’s Send and Cross-Border Services to deliver its customers more choices on how they send and receive funds abroad to their families, loved ones, or acquaintances.

Moreover, both companies focused on the process of improving the overall transparency, convenience, and speed of delivering these funds by leveraging Remitly’s application.

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Keywords: partnership, product launch, Open Banking, Open Finance, financial services, financial institutions, online banking, digital payments, mobile banking, payments
Categories: Payments & Commerce
Companies: J.P. Morgan, Mastercard
Countries: United States
This article is part of category

Payments & Commerce

J.P. Morgan



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