Mastercard has launched an open banking-powered subscriptions management tool that banks can plug into their apps.
According to a Mastercard survey, 73% of people say they’d be interested in a tool that would help them identify, track, cancel, or renew subscriptions, and 60% trust their bank with such a tool.
Smart Subscriptions connects multiple accounts into one central hub using Mastercard’s open banking technology, provided by Finicity. The white-labelled, payment- and network-agnostic tool can be implemented with a single, low-lift API.
Bank customers can cancel, pause and resume their subscriptions, while also receiving individual spend analysis, expenditure categorisation, and personalised offers. Mastercard says the technology also benefits banks, helping them to drive loyalty, increase engagement, and reduce chargebacks.
The system is currently being piloted in the US but is expected to arrive in other countries this year.
Raj Seshadri, president, data and services, Mastercard, says: "No matter how many services you pay for, managing those recurring subscriptions should be simple and seamless.
"Smart Subscriptions acts on that insight, meeting the standards for effortless engagement that both banks and consumers demand. And when those standards are met, the true metric of success is loyalty."