Mastercard and Cardstream team up for Open Banking transaction solutions
Mastercard and Cardstream Partner to Drive Open Banking Adoption in Europe
Mastercard has formed a partnership with Fintech company Cardstream, leveraging Mastercard's Open Banking technology to create a new solution that supports single immediate payments. This collaboration is set to help businesses and consumers in the UK prepare for the rollout of commercial variable recurring payments (cVRPs) across Europe and the UK later this year.
The new company for cVRP, yet to be named, is expected to be funded by 31 firms from Open Banking and payments, as announced by Open Banking Limited last week. Mastercard's commitment to Cardstream includes supporting both issuing and acquiring customers with a comprehensive Open Banking solution.
Adam Sharpe, CEO of Cardstream, stated that there's strong demand for Open Banking payments as a secure and convenient way to pay alongside cards. Valerie Nowak, Executive Vice President, Head of Open Banking, APEMEA at Mastercard, emphasised that the Open Banking market in Europe is set for significant growth.
The platform, built on Mastercard's Open Banking technology, is designed to provide seamless bank connectivity. Cardstream's PFaaS and gateway technology processes, collects, and disburses Open Banking transactions to merchants.
The solution is expected to drive convenience and security, key factors in gaining trust and encouraging wider adoption of open banking by both businesses and consumers. Mastercard identifies several major open banking use cases, including broader consumer credit analytics, fraud prevention, enhanced payment flexibility, and crypto/digital currency integration.
Mastercard's partnership with Cardstream allows payment providers to launch branded Open Banking Merchant Services quickly. As a result, acquirers, payment facilitators, and payment channels using Cardstream will be able to offer their merchant customers the option to accept Open Banking payments, alongside traditional forms of payments like debit and credit cards.
The new company for cVRP is expected to support the rollout of commercial variable recurring payments (cVRPs) across Europe and the UK later this year. cVRPs will allow people to pay for recurrent bills directly from their bank account, offering a more seamless and convenient payment experience.
Mastercard stresses that these use cases drive convenience and security, important for gaining trust and encouraging wider adoption of open banking by both businesses and consumers. Mastercard is committed to fostering an innovative, accessible, and secure payments ecosystem.
- The collaboration between Mastercard and Cardstream will utilise Mastercard's Open Banking technology to establish a new solution that facilitates single immediate payments, supporting the upcoming rollout of commercial variable recurring payments (cVRPs) across Europe and the UK.
- The new cVRP company, funded by 31 firms from Open Banking and payments, is designed to provide seamless bank connectivity, with Cardstream's PFaaS and gateway technology processing, collecting, and disbursing Open Banking transactions to merchants.
- The partnership between Mastercard and Cardstream allows payment providers to launch branded Open Banking Merchant Services quickly, enabling acquirers, payment facilitators, and payment channels using Cardstream to offer their merchant customers the choice to accept Open Banking payments, in addition to traditional debit and credit card payments.
- The platform, built on Mastercard's Open Banking technology, is expected to drive convenience and security, as it integrates with major open banking use cases, such as broader consumer credit analytics, fraud prevention, enhanced payment flexibility, and crypto/digital currency integration.
- Mastercard emphasises that these initiatives focus on convenience and security, essential factors in fostering trust and promoting wider adoption of open banking by both businesses and consumers, aiming to create a more innovative, accessible, and secure payments ecosystem.
