Mastercard has introduced two innovative open banking tools aimed at enhancing predictability and transparency in digital account-to-account payments for merchants.
These tools, developed by Finicity—an open banking specialist acquired by Mastercard in 2020—are the Payment Success Indicator and the Payment Routing Optimizer. Both utilize advanced data analytics and machine learning to create a safer, more efficient payment experience.
The Payment Success Indicator leverages real-time bank account information, authorized by consumers, allowing payment originators—such as merchants, banks, digital wallets, or payment service providers—to evaluate an individual’s balance and historical behavior patterns for each transaction.
In parallel, the Payment Routing Optimizer interprets this data to recommend the most suitable payment method and timing, considering factors such as cost, speed, and risk. For instance, if the Payment Success Indicator indicates that funds are available for a transaction today but may not be in the coming days, the Payment Routing Optimizer will suggest using Same Day ACH.
These tools are set to be widely available later this year. Early adopters include Bilt Rewards Alliance, which encompasses over two million rental homes across the United States, allowing renters to earn points through rent payments. Ankur Jain, CEO of Bilt Rewards, commented, “The Payment Success Indicator is expected to significantly minimize the likelihood of returned payments, providing a digital payment experience that is both efficient and intelligent for all parties involved.”