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Mastercard Launches Smart Subscriptions for Open Banking-Powered Subscription Management

Mastercard has introduced Smart Subscriptions, a solution powered by open banking for managing subscriptions within consumer banking apps.

It offers spend analysis, categorisation, and personalised offers, building on Mastercard’s Subscriptions Control solution, introduced in 2023. It also enables consumers to cancel, pause and resume their subscriptions.

According to a Mastercard survey, seventy-three percent of consumers expressed interest in a tool that would assist them in identifying, tracking, canceling, or renewing subscriptions, while sixty percent of consumers trust their bank to provide such a tool.

Single API

Smart Subscriptions connects multiple accounts into one central hub using Mastercard’s open banking technology, provided by its US open banking arm Finicity. The uniquely configured white-labeled solution, which is payment- and network-agnostic, enables any bank to implement it with a single, low-lift API.

“No matter how many services you pay for, managing those recurring subscriptions should be simple and seamless,” said Raj Seshadri, president of Data & Services at Mastercard. “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.”

With sight into individual subscription activities, including detailed payment history, upcoming bills, and subscription cancellation, Smart Subscriptions enables greater transparency to where the consumer’s money is going and provides more tools to manage those transactions. Furthermore, with personalised insights and tailored merchant offers, consumers can connect more deeply with their financial institution and save money at merchants they frequent, right within their banking app.

Mastercard’s Smart Subscriptions, presently undergoing testing in the US, tailors for the need for thorough subscription management and customised offers while meeting the growing demand for enhanced banking experiences. Mastercard’s Smart Subscriptions team expects to expand into additional markets later this year.

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