Fintech: J.P. Morgan Payments’ Pay-By-Bank, Powered By Mastercard’s Open Banking Technology, Goes Live

October 20, 2023 | FinTech, News

“We are dedicated to enabling our clients to offer their customers a variety of payment options. Our partnership with Mastercard will allow for easy and secure payments directly from bank accounts.” – Max Neukirchen, Head of Payments & Commerce Solutions, J.P. Morgan.

In a significant development, J.P. Morgan (NYSE: JPM) Payments has launched its Pay-by-bank solution in the United States. This innovative offering allows billers to enable their customers to pay bills directly from their bank accounts. It leverages Mastercard’s (NYSE: MA) open banking technology to enhance J.P. Morgan Payments’ ACH capabilities, providing a secure and convenient payment choice for customers, especially for recurring payments such as rent, utilities, healthcare, and more. Verizon (NYSE: VZ) is planning to pilot this service with U.S. customers in the near future.

Pay-by-bank simplifies the payment process for both consumers and billers. Consumers can select this option and securely share their bank account information through Mastercard’s open banking platform for various recurring payments. This enhances the checkout experience, using existing authentication protocols, including biometrics, for added security. For billers, the Pay-by-bank solution offers insights into the optimal time to initiate payments, reducing the risks of returns due to insufficient balances and ensuring payments get made securely. (Businesswire)

Chiro Aikat, EVP, U.S. Market Development at Mastercard, said it was important to offer choice and value in every payment interaction, empowering consumers to have more control over their finances for everyday expenses. This partnership between J.P. Morgan Payments and Mastercard addresses these needs, delivering a seamless and secure payment experience.

This launch follows a successful first development stage of the Pay-by-bank partnership that began in November 2022. J.P. Morgan Payments, a global leader in payment processing, handles over $9 trillion in payments daily across more than 160 countries and 120 currencies.

Pay-by-bank is another example of how Mastercard’s Open Banking technology facilitates secure data sharing for innovative experiences in payments and lending. With a commitment to responsible data practices, Mastercard ensures that individuals own and control their data, benefit from its use, and are protected. This innovation aims to unlock new possibilities in the digital economy.

Related Story:  JPMorgan Chase Hikes Stake In Brazilian Digital Bank C6 To 46%

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