What will payments look like in 2022 and beyond? In “The way payments are now made, ”Jess Turner, Executive Vice President, New Digital Infrastructure and Fintech, Mastercard, joins 32 other payments managers to discuss what the ‘new normal’ in payments looks like. Turner explores how the pandemic made mobile banking, account opening and real-time payments a necessity.
As we face in-person restrictions, the demand for and use of digital financial services has increased. Mobile banking, account opening or real-time payment are now not only our first instinct, but often a necessity. Mastercard’s 2020 Global State of Pay study found that 73% of consumers and 67% of small businesses had used mobile banking apps to manage their finances and make payments in the past 12 months, and 53% of consumers have stated to use them more now than they had before.
Consumers want flexibility in the way they manage their finances, and true financial services innovators offer experiences that provide that choice. Opening checking accounts online is increasingly a part of a consumer’s normal payment routine, and is fueled by open banking, which also saw significant acceleration during COVID-19 and is growing in the world. global scale. Almost two-thirds (64%) of checking accounts opened during the height of the pandemic were submitted online or on a mobile device, with more than eight in 10 banking app users saying the experience was ‘easier than’ they didn’t think so ”. This is largely due to the open bank.
Digital account opening is here to stay, and consumers expect to open an account in seconds. But issues like manual downloads and micro-deposits add delays. Open banking introduces new ways for financial institutions and apps to verify account ownership and authenticate credentials for opening and funding accounts. The balance between risk, compliance and customer experience is delicate: efficiency cannot compromise fraud prevention. Trust is essential in our hyper-connected digital environment, and the consumer must be at the center of control, ensuring greater transparency.
That’s why we have a solution that provides secure and lightning-fast account verification. Mastercard’s open banking network removes friction points in account setup, integration, and the funding process. Open banking introduces new ways for FIs to verify account ownership and authenticate credentials for opening and funding that include account owners, account details, and balances that increase enrollment and reduce dropouts. Connectivity is also useful when customers have an existing relationship with an FI, but want to transfer money or add services. Data services help FIs verify account details and balances in milliseconds, while transferring money accurately and securely.
With the rapid emergence and global expansion of open banking, the money experience will never be the same again. At Mastercard, we’re redesigning our network to fuel the future of payments and services. An open global banking network, coupled with our existing multi-rail expertise, enables our partners to better serve consumers and their changing expectations with digital experiences.