Mastercard Open Banking unveils account opening, funding solutions

Mastercard has integrated new account opening and funding solutions enabled by Open Banking, payroll and merchant data connections, in partnership with US-based Atomic.

‘Deposit Switch’ and ‘Bill Pay Switch’ allow consumers to automatically switch their direct deposits and update their recurring bill payments, when opening a digital account or when updating information on an existing account, and are available via a single integration to Mastercard Open Banking.

Atomic is a payroll and merchant connectivity solutions provider and a member of Mastercard’s ‘Start Path’ program.

At the start of the year, Mastercard chose 15 startups from around the world to take part in its ‘Start Path’ engagement programs, focused on small business and Open Banking, respectively.

Mastercard’s ‘Deposit Switch’, which is embedded directly within a financial institution’s app or website, connects to the major payroll systems in the US and allows consumers to update or redirect their deposit allocations in real time.

It uses Atomic’s ‘TrueAuth’ technology to enable individuals to link to their payroll provider without the need to share credentials with third parties.

Through ‘Bill Pay Switch’, consumers can add or update their payment details at the merchants and billers they use regularly, including subscription providers, utilities, telecom and insurance, and can be offered as part of a financial institution’s digital banking “experience”.

It also uses Atomic’s ‘TrueAuth’ to authenticate directly with each provider and update the payment credential on file.

“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,” said Silvana Hernandez, executive vice president, Mastercard, North America.

“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.”

Jordan Wright, co-founder and chief executive officer of Atomic, added that its collaboration alleviates “common pain points”.

“This partnership allows us to leverage our advanced payroll and merchant connectivity to enhance user experiences. Our goal is clear: to help people manage their money better by providing smarter, more connected financial solutions,” Wright said.