Merchants can use advanced data analytics and machine learning to augment the payment experience. Mastercard is launching two new Smart Payment Decisioning Tools, Payment Success Indicator and Payment Routing Optimizer, part of Finicity’s open banking suite of services that enables payments and account creation.
Bilt Rewards Alliance, a collection of more than 2 million rental homes across the US that lets renters earn points by paying rent, will be one of the first fintech partners to launch Payment Success Indicator. Using real-time bank account information permissioned by the consumer, Payment Success Indicator lets the payment originator assess a consumer’s balance and historical behavioural risk patterns for each transaction.
Payment Routing Optimizer interprets that score and recommends the optimal day and payment rail (such as Same Day ACH or Next Day ACH) taking into account cost, speed, and risk. So, for example, if Payment Success Indicator shows that the balance for a transaction is available today but may not be in the next few days, Payment Routing Optimizer will recommend using Same Day ACH.
This product aims to take the friction out of choosing between digital payments with future versions of the Payment Routing Optimizer potentially including a debit card option. They are also enabled by Open Banking, which allows consumers to affirmatively grant secure access to their bank account data for more seamless financial service experiences.
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