Mastercard has enhanced its Open Banking platform to allow users to automatically switch their direct deposits and update recurring bill payments when opening or updating their accounts.
An EMarketer study on mobile account opening indicated that automated deposit switching was the top feature requested by Americans. However, Mastercard notes that the current process often still requires manual paperwork and can involve lengthy wait times for HR processes to be finalized.
Integrated directly within a financial institution’s app or website, Mastercard’s Deposit Switch enables consumers to bypass manual procedures and automatically direct their payroll deposits to either a new or existing bank account. This functionality leverages technology from Mastercard Start Path member Atomic, allowing users to connect with their payroll provider without needing to share their credentials with third parties.
Additionally, the Bill Pay Switch feature allows users to effortlessly add or modify their payment information with merchants and billers they frequently use, including subscription services, utilities, telecommunications, and insurance. Atomic’s technology facilitates direct authentication with each provider, enabling payment credential updates without leaving the financial institution’s app or site.
Silvana Hernandez, EVP of Mastercard North America, emphasizes that “Digital consumers are seeking maximum value from their bank accounts, which includes simplified and modernized processes for tedious tasks like rerouting direct deposits and paying bills.” She also points out that Gen Z, in particular, favors debit for everyday expenses, and providing a secure, seamless online banking experience through open banking connectivity is essential for driving account primacy among financial institutions.