March 4, 2024

A new Mastercard interface — and the card giant calls it Open Banking Solution – Provides integrated identity verification when new account holders and customers are onboarded and begin transacting with businesses and financial services.

MasterCard Announce New API last week.

In doing so, Card Networks cites the following figures:

  • 78% of American adults prefer bank Via mobile application or website.
  • Digital transaction volume is expected to reach $15 trillion by 2027.

“Our digital identity and open banking network instills confidence in both sides of the interaction,” Chris Reid, executive vice president of identity solutions at Mastercard, said in a company news release. “By protecting our online ecosystem, we are delivering on our promise to bring more people and businesses into the digital economy.”

API verifies account ownership and identity in real time. Pre-population of account and routing information reduces errors, Mastercard said, touting it as a solution for financial institutions and fintech firms that offers an easy onboarding process and minimizes fraud risk and friction.

Deep Dive into Digital Identity

in a february Javelin Strategy and Research report, entitled The future of digital identity is nowsenior analyst Susan Sandow detailed that consumers are increasingly comfortable with the technology, especially as it relates to government-issued ID cards and mobile driver’s licenses.

But, Sando writes, the potential of digital IDs is much greater. With the ability to securely prove their identity, consumers can use these credentials for a range of use cases, including claiming government benefits, opening financial accounts and preparing legal documents.

The report also warns that financial institutions and identity providers must proactively allay consumers’ concerns about new technologies as they move to them.

Back to MasterCard

mastercard relies on subsidiary Data Security and finiteness to power its new solutions.

Finicity provides Open Banking functionality for the API. NuData provides behavioral biometrics to drive authentication.

The result, Mastercard says, is a solution that lets banks and fintechs conduct business with confidence, knowing who their customers are and what accounts they have linked to them.

“Digital account opening is central to attracting new clients and growing your business,” jess turnerExecutive Vice President of Global Open Banking and APIs at Mastercard said in a press release.