Mastercard and Paytently Team to Promote Open Banking

Specialist payments orchestration platform Paytently launched an open banking partnership with Mastercard.

Paytently Open Banking is an account-to-account payment option powered by Mastercard Open Finance, the company said in a news release Thursday (Sept. 11).

Customers who use the option at checkout can pay directly from their bank, helping merchants increase conversion rates and improve cash flow, according to the release.

“Leveraging Mastercard’s open banking connectivity and Paytently’s orchestration layer, Paytently Open Banking streamlines payments end-to-end, bringing secure bank authentication, payment initiation, and enhanced reconciliation within a single flow for greater operational efficiency,” the release said.

Paytently’s proprietary orchestration engine routes transactions over the most effective rail for automatic payment confirmation and quicker settlement. The two companies are set to present the solution at the SBC Summit in Lisbon next week.

“The partnership reflects a strong alignment between Mastercard’s global scale and secure open finance infrastructure, and Paytently’s agility and expertise in orchestrating payments for various sectors,” the release said. “Together, they are bringing an advanced open banking payment solution to market that delivers on speed, reliability and customer experience.”

The PYMNTS Intelligence report “Consumer Sentiment About Open Banking Payments” found that around 11% of consumers in the United States used open banking payments, although 82% of those users were satisfied. Another 56% of consumers who had not used open banking pointed to security and trust concerns as factors holding them back.

While almost 43% trust their banks to provide open banking services, that leaves much work when it comes to awareness and credibility.

“Pushback has intensified as banks look to impose fees for data access as they seek to recoup the costs of security and innovation, a move that critics on the FinTech and third-party provider side of the equation have said will create headwinds,” PYMNTS reported Aug. 25.

Meanwhile, open banking is finding popularity in the United Kingdom, where it is used by nearly a third of all adults, Open Banking Limited said earlier this month. In July, open banking services were used a record 2.04 billion times, a 3.5% increase from the previous month.