Mastercard uses Open Banking to make account opening and updating easier

According to an EMarketer mobile account opening study, automatic deposit switching was the most requested feature by Americans. However, according to Mastercard, the process still often involves manual paperwork and long wait times for HR processes to complete.

Integrated directly into a financial institution’s app or website, Mastercard’s Deposit Switch allows consumers to skip manual paperwork and automatically redirect their payroll deposits to a new or existing bank account.

The feature leverages technology from Mastercard Start Path member Atomic, which allows users to connect to their payroll provider without having to share their credentials with third parties.

The Bill Pay Switch feature allows users to add or update their payment details with the merchants and billers they regularly use, such as subscription providers, utilities, telecommunications providers and insurance companies. Atomic’s technology is used to authenticate directly with each provider and update payment credentials on file, without leaving the bank app or website.

Silvana Hernandez, EVP, Mastercard, North America, says: “Digital consumers expect maximum value from their bank account, which includes simplified and modernized processes for tedious tasks like redirecting direct deposits and paying bills.”

“We also know that Generation Z in particular prefers debit cards as their preferred payment method for everyday expenses. Therefore, providing a secure, seamless online banking experience through open banking connectivity will ultimately help drive account primacy at financial institutions.”