Mastercard has introduced Smart Subscriptions, a new solution designed to simplify subscription management and enhance financial wellness. This open-banking powered tool can be seamlessly integrated into consumer banking applications, offering features such as individual spend analysis, expenditure categorization, and personalized offers all within a user-friendly interface.
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Smart Subscriptions builds upon Mastercard’s Subscriptions Control solution, introduced in 2023, which allows consumers to easily manage their subscriptions by enabling cancellation, pause, and resume functions. A recent Mastercard survey revealed that 73% of consumers are interested in a tool to help track, cancel, or renew subscriptions, with 60% trusting their bank to provide such a service.
Utilizing Mastercard’s open banking technology provided by its U.S. arm, Finicity, Smart Subscriptions consolidates multiple accounts into one central hub. This white-labeled solution, compatible with various payment networks, can be implemented by any bank with a single, low-lift API. The platform aims to deliver both convenience and control, benefiting financial institutions by driving loyalty and reducing chargebacks, while providing consumers with greater visibility into their financial health and access to personalized insights and offers.
Raj Seshadri, president of Data & Services at Mastercard, emphasized the importance of simplicity in managing recurring subscriptions, highlighting Smart Subscriptions’ ability to meet the demands of both banks and consumers. By offering insights into individual subscription activities and personalized merchant offers, the platform enables consumers to make informed financial decisions and save money directly through their banking app.
Currently undergoing pilot testing in the U.S., Mastercard’s Smart Subscriptions is poised to fulfill the growing need for comprehensive subscription management and personalized banking experiences. Expansion into additional markets is expected later this year.
