Mastercard seeks to break down trust barriers in Open Banking

Mastercard has unveiled a suite of services to help banks and fintechs navigate the Open Banking terrain.

  21 4 comments

Mastercard seeks to break down trust barriers in Open Banking

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

The programme seeks to address the liability worries of banks sharing their data with third parties and to help startups to better communicate with their banking partners.

For banks, Mastercard is building a pan-European directory of verified and legimate third party providers, backed by a fraud monitoring service and dispute resolution mechanism. Startups in turn will be provided with a 'connectivity hub' that will help third parties establish and maintain communication with banks.

“We believe that these services address significant obstacles to the creation of a vibrant and successful open banking ecosystem” says Jason Lane, EVP, market development Europe. “We recognize that trust challenges exist on both sides - third parties need to be able to access the data and infrastructure controlled by banks, and at the same time banks need confidence that the third parties requesting account access are legitimate."

The new suite of services will be launched first during a pilot phase in early 2019, says Lane, with the UK and Poland being a particular priority, before being rolled out across Europe later that year.

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Comments: (4)

A Finextra member 

Should I be worried by this?

Why are MasterCard helping their potential competitors unless there's something in it for them? Are they doing it simply to ensure that the fintechs continue to use their rails and thus retain a finger in the payments pie? If that is the case how will competition be effective?

A Finextra member 

Maybe becasue if third party services offer cards in a new way or more accessible they get what they need, increased spend. Simples!

 

A Finextra member 

I welcome this move by MaterCard; it will have a significant positive impact on the progress of Open banking to the benefits of ALL interested parties.

A Finextra member 

Whomever launches the service that shows the bank balance, teh card balance, cashflow and a funding line from the card to the account wins in my opinion.

 

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