Mastercard reports that the number of subscriptions held by consumers has significantly increased, with an average of 12 media and entertainment subscriptions per person in the US, and millennials averaging 17. The subscription economy is thriving and projected to reach USD 1.5 trillion by 2025. However, this growth poses a challenge for consumers in managing and cancelling their numerous recurring payments.
Mastercard and Subaio have set out to enable consumers to unsubscribe from unwanted services. This solution provides them with visibility into their subscriptions and recurring payments within their digital banking platform, regardless of how the consumer chooses to pay. No need to exit one app and log into another, consumers can unsubscribe from services directly within their digital banking app.
Speaking on this partnership, Mastercard’s officials explained that people want greater visibility over their monthly spending. This solution gives consumers direct control over their subscription payments through a single trusted source.
Financial Institutions that enable consumers to better control their spend can reduce operational costs, while both merchants and issuers can also avoid the cost of disputes and alleviate pressure on call centres
This collaboration is part of a broader Mastercard strategy to introduce new consumer-centric solutions across functions. When people are able to manage and discover subscriptions that are right for their everyday needs, issuers and merchants are better positioned to create and maintain long-lasting connections.
Mastercard’s solution is now available to banks in North America and Europe. Through a single API, financial institutions can provide their customers with subscriptions control, as well as the ability to view digital receipts and merchant details – simplifying consumers’ digital financial lives.
Subaio’s representatives said that together with Mastercard, they stand stronger in enabling consumers to make informed financial decisions. They deliver a smooth experience for controlling subscriptions and payments, designed to meet the needs of modern consumers’ fast-paced lifestyles.
In 2022, Subaio went on to partner with Aiia, a Mastercard company specialised in Open Banking, to automate creditworthiness for financial institutions.
With access to Open Banking, the solution enabled financial institutions, banks, leasing companies, and more assess consumers’ creditworthiness automatically. The traditional credit scoring industry has been associated with long, manual processes that have left room for human mistakes as well as being a costly and slow affair. Therefore, the collaboration aimed to improve creditworthiness assessment by combining the access to financial data from Aiia with Subaio’s existing recurring payments detection, building a whitelabel solution that removes the headache for financial institutions.
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