Mastercard has updated its Open Banking platform to enable people to automatically switch their direct deposits and update their recurring bill payments when they open or update an account.
According to an EMarketer study on mobile account opening, automated deposit switching was the number one feature demanded by Americans. Yet, says Mastercard, the process still often involves manual paperwork and long wait times for HR processes to clear.
Embedded directly within a financial institution’s app or website, Mastercard’s Deposit Switch lets consumers skip manual paperwork and automatically route their payroll deposits to a new or existing bank account.
The feature takes advantage of technology from Mastercard Start Path member Atomic, which allows users to link to their payroll provider without having to share credentials with third parties.
Meanwhile, the Bill Pay Switch feature means people can add or update their payment credentials at the merchants and billers they use regularly, such as subscription providers, utilities, telecom and insurance. Atomic's technology is used to authenticate directly with each provider and update the payment credential on file, all without leaving the bank app or site.
Silvana Hernandez, EVP, Mastercard, North America, says: “Digital consumers are looking for maximum value from their bank account, which includes simplified and modernized processes for tedious tasks like rerouting direct deposits and paying bills.”
“We also know that Gen Z in particular is leaning into debit as a preferred payment for everyday expenses, so providing a secure, seamless online banking experience through open banking connectivity will ultimately help drive account primacy for financial institutions.”