The service means that consumers will not need to type in their routing and account information when they make recurrding payments, such as for rent, utilities, tuition, and insurance.
Pay-by-Bank also uses Mastercard’s Smart Payment Decisioning Tools to analyse the best time to initiate the payment based on the bill payer’s historical transaction behavior and risk patterns.
It is being piloted with a small number of US-based billers and merchants this year with plans to expand in 2023.
“Pay-by-Bank reduces the likelihood of unauthorised transactions and frees our clients from the need to retain — and the responsibility to securely maintain — consumer banking information.
We’re delighted to work with Mastercard to offer an attractive, simple and secure Pay-by-Bank solution that gives choice to our clients and their customers who use ACH as their payment mechanism,”
said Max Neukirchen, Head of Payments & Commerce Solutions, J.P. Morgan Payments.
“Billers and consumers both get greater payment choice, but the partnership also propels payments innovation on two fronts — in the ease of the user experience and in the security of data sharing,”
said Chiro Aikat, Executive Vice President, Merchants & Acceptance, Mastercard North America.
This article first appeared on Fintech News Switzerland.