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Mastercard Rolls Out New Payment Tools to Reduce Friction 







Mastercard is introducing two new payment solutions to lower risks while improving costs, boosting speed, reducing friction and making payments smarter, according to a press release on Wednesday (March 23).

The new smart payment decisioning tools — Payment Success Indicator and Payment Routing Optimizer — are part of Finicity’s open banking suite of services that seamlessly and securely facilitates payments and account creation. Retailers can tap advanced data analytics and machine learning to make payments both safer and smarter. 

See also: Security, Trust Key to Consumer Adoption of Open Banking

“By fundamentally improving the payment experience and solving real-world challenges, we are delivering new technologies to offer more ways to pay with greater speed, convenience and confidence,” said Chiro Aikat, executive vice president, product and engineering, North America at Mastercard.

The Payment Success Indicator uses permissioned real-time account information to enable the payment originator to access a person’s balance and history for every transaction. 

Among the first FinTech partners that will be using the Payment Success Indicator will be Bilt Rewards Alliance, a company with over 2 million rental homes nationwide that lets people earn points by paying rent.

Read more: FinTech Automation Partners with Finicity to Use Open Banking Data on Infrastructure-as-a-Service Offering

“Our mission is to help renters get the most value out of one of their biggest expenses, and returned payments create significant expense and friction for both residents and landlords,” said Ankur Jain, founder and CEO of Bilt Rewards. 

“Payment Success Indicator should significantly reduce the potential for returned payments, delivering a digital payment experience that works harder and smarter for everyone,” Jain said.

The Payment Routing Optimizer interprets the best day and payment rail (such as Same Day ACH or Next Day ACH) taking into account cost, speed and risk. 

“For example, if Payment Success Indicator shows that the balance for a transaction is available today but may not be in the next few days, Payment Routing Optimizer will recommend using Same Day ACH,” per the release.

The Payment Success Indicator and Payment Routing Optimizer are anticipated to be available in the U.S. later this year.




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