Mastercard, a global leader in payment technology, has launched an open banking-powered solution which seamlessly integrates into consumer banking applications for financial institutions.
The introduction of the Smart Subscriptions solution comes in response to the growing demand for streamlined subscription management tools among consumers.
With the rise of subscription-based services across various industries, there is a need for a comprehensive solution that offers both convenience and control to users.
Smart Subscriptions goes beyond basic management functions, offering additional features such as individual spend analysis, expenditure categorisation, and personalised offers. By leveraging Mastercard’s Subscriptions Control solution, Smart Subscriptions allows consumers to easily cancel, pause, and resume their subscriptions as needed.
The product leverages Mastercard’s open banking technology, provided by its U.S. open banking arm Finicity, to connect multiple accounts into one central hub.
This white-labeled solution is payment- and network-agnostic, making it easily configurable for any bank to implement with a single API.
According to a Mastercard survey, there is significant interest among consumers in tools that facilitate subscription management, with 73% expressing interest in such a solution. Moreover, 60% of consumers trust their banks to provide such tools, highlighting the potential for Smart Subscriptions to drive engagement and loyalty among banking customers.
Raj Seshadri, president of Data & Services at Mastercard, stated,”No matter how many services you pay for, managing those recurring subscriptions should be simple and seamless. Smart Subscriptions acts on that insight, meeting the standards for effortless engagement that both banks and consumers demand. And when those standards are met, the true metric of success is loyalty.”
Currently undergoing pilot testing in the U.S., the offering is poised to bridge the gap between comprehensive subscription management and personalised banking experiences.
It is expected to be rolled out in additional markets later this year, offering consumers greater control over their finances and deeper engagement with their financial institutions.
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