J.P. Morgan and Mastercard Take Pay-by-Bank Live
- J.P. Morgan Payments' Pay-by-bank solution is now available in the U.S.
- Verizon plans to pilot the Pay-by-bank offering with U.S. customers
- Pay-by-bank offers a secure and frictionless payment experience
- The solution uses existing authentication protocols and biometrics for payment execution
- Pay-by-bank analyzes payment initiation based on transaction behavior and reduces the risks of returns due to insufficient balance
- None.
-
Now available in the
U.S. for billers for a variety of recurring payments including rent, utilities, healthcare and more - Verizon planning to pilot offering
- Pay-by-bank is powered by Mastercard’s open banking technology, supporting the permissioned exchange of safe and secure payments
Verizon is planning to pilot J.P. Morgan Payments’ Pay-by-bank offering with
“This innovative payment option aligns with our commitment to providing our customers with convenient and secure payment choices. We believe that Pay-by-bank will enhance the overall customer experience, making it easier and more efficient for our customers to pay their bills,” said Darrell Conn, Executive Director, Verizon. “We look forward to this partnership with J.P. Morgan and Mastercard to bring more innovative solutions to our customers.”
Pay-by-bank is a payment option that gives merchants the ability to allow their customers to conveniently pay directly from their bank account using traditional ACH banking rails.
“We are dedicated to enabling our clients to offer their customers a variety of payment options,” says Max Neukirchen, Head of Payments & Commerce Solutions, J.P. Morgan. “Our partnership with Mastercard will allow for easy and secure payments directly from bank accounts. We are excited for the future as we have a robust pipeline of biller clients across the
How it works:
J.P. Morgan Payments’ Pay-by-bank offering addresses multiple pain-points for billers in particular. Billers whose customers already pay with ACH can enable the Pay-by-bank solution on their existing payments page. Consumers can then select “Pay-by-bank.” They will be prompted to choose their bank and agree to securely share their bank account information through Mastercard’s open banking platform for recurring payments like rent, utilities, tuition and account top ups, insurance, and healthcare.
- For consumers, Pay-by-bank elevates the checkout experience, allowing billers to provide their customers with the option for a new, secure way to pay. The solution uses the consumer’s existing authentication protocols with their bank, including technologies such as biometrics, to retrieve all necessary information to execute a payment. As a result, they can securely make payments like rent, utilities, tuition, insurance, and healthcare.
- For billers, customers that already pay with ACH can enable the Pay-by-bank solution on their existing payments page. Pay-by-bank uses Mastercard’s open banking technology, including Smart Payment Decisioning Tools to analyze the optimal time to initiate the payments based on the bill payer’s historical transaction behavior and risk patterns, which protects both consumers and merchants by helping ensure payments get made and reducing the risks of returns due to insufficient balance. Benefits also include securely receiving consumer-permissioned bank data, which can reduce the likelihood of unauthorized transactions, as well as eliminating the need to retain customer banking information.
“Today’s digital consumer seeks choice and value in every payment interaction,” said Chiro Aikat, EVP,
The launch follows a successful first development stage of J.P. Morgan Payments and Mastercard’s Pay-by-bank partnership, which began in November 2022.
J.P. Morgan Payments is a global leader, processing more than
Pay-by-bank is another innovation in which Mastercard’s Open Banking technology lets people and businesses around the world safely share their data to access innovative experiences, from new ways to pay to secure and frictionless lending. For more than five decades, Mastercard has used responsible data practices to power and protect its global network and the broader digital ecosystem. Mastercard’s Data Responsibility Principles put the individual at the center of its data-design practices: you own it, you control it, you should benefit from the use of it, we protect it.
About J.P. Morgan’s Corporate & Investment Bank
J.P. Morgan’s Corporate & Investment Bank is a global leader across banking, markets and securities services. The world’s most important corporations, governments and institutions entrust us with their business in more than 100 countries. With
About Mastercard (NYSE: MA)
Mastercard is a global technology company in the payments industry. Our mission is to connect and power an inclusive, digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible. Using secure data and networks, partnerships and passion, our innovations and solutions help individuals, financial institutions, governments and businesses realize their greatest potential. With connections across more than 210 countries and territories, we are building a sustainable world that unlocks priceless possibilities for all.
View source version on businesswire.com: https://www.businesswire.com/news/home/20231020573437/en/
Contacts:
JP Morgan, Richard Hillary
richard.hillary@jpmorgan.com
Mastercard, Raul Lopez
Raul.Lopez@mastercard.com
Source: JPMorgan Chase & Co.
FAQ
What is J.P. Morgan Payments' Pay-by-bank solution?
Who is partnering with J.P. Morgan Payments for Pay-by-bank?
What benefits does Pay-by-bank offer for billers?
How does Pay-by-bank work for consumers?
What is the future plan for Pay-by-bank?
