Thu, Oct 10 2024
The world leader in payment technology, Mastercard, has introduced an open banking-powered solution that fits very easily with financial institutions' consumer banking apps.
The launch of the Smart Subscriptions solution is a reaction to the increasing customer demand for simpler tools for managing subscriptions.
The proliferation of subscription-based services in diverse industries has necessitated the development of an all-encompassing solution providing consumers with convenience and control.
Smart Subscriptions delivers extra capabilities including individual spend analysis, spending categorization, and personalized offers in addition to standard management operations. Smart Subscriptions makes it simple for customers to pause, restart, and cancel their subscriptions as needed by utilizing Mastercard's Subscriptions Control service.
The solution links several accounts into a single central hub by utilizing Mastercard's open banking technology, which is supplied by its open banking subsidiary Finicity in the United States.
With a single API, any bank may effortlessly configure and implement this white-labeled solution, as it is not dependent on any particular payment method or network.
Consumers are very interested in tools that make subscription management easier, as indicated by a Mastercard survey, in which 73% of respondents said they would be interested in such a solution. Furthermore, 60% of customers believe that their banks will offer these kinds of resources, which emphasizes how Smart Subscriptions can increase customer loyalty and engagement.
"Managing those recurring subscriptions should be simple and seamless, regardless of how many services you pay for," said Raj Seshadri, president of Data & Services at Mastercard. Based on that realization, Smart Subscriptions satisfies the requirements for simple interaction that customers and banks have set forth. And loyalty is the real test of success once those requirements are satisfied.
The product, which is already undergoing pilot testing in the United States, is well-positioned to close the gap between extensive subscription management and customized banking experiences.
Later this year, it is anticipated to be implemented in more countries, giving customers more financial autonomy and a closer relationship with their financial institutions.
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