Today, Mastercard announced the integration of Deposit Switch and Bill Pay Switch with Mastercard’s Open Banking platform, enabling consumers to automatically switch their direct deposits and update their recurring bill payments, both when opening a digital account or when updating information on an existing account. The solutions will be delivered in partnership with Atomic, a leader in payroll and merchant connectivity solutions and a member of Mastercard’s Start Path program. Through a single integration to Mastercard Open Banking, customers will have access to an entire suite of account opening and funding solutions enabled by open banking, payroll and merchant data connections.
The state of online banking
A study on mobile account opening showed that automated deposit switching was the number one feature demanded by consumers. Yet the process still involves manual paperwork and long wait times for HR processes to clear. In parallel, financial institutions are placing increasing importance on growing deposits and obtaining primacy with their customers – other researchshowed that nearly 80 percent of banking executives see opportunities to grow deposits as a crucial part of the account onboarding experience.
“Digital consumers are looking for maximum value from their bank account, which includes simplified and modernized processes for tedious tasks like rerouting direct deposits and paying bills,” said Silvana Hernandez, Executive Vice President, Mastercard, North America. “We also know that Gen Z in particular is leaning into debit as a preferred payment for everyday expenses, so providing a secure, seamless online banking experience through open banking connectivity will ultimately help drive account primacy for financial institutions.”
Taking the pain out of switching direct deposits
Embedded directly within a financial institution’s app or website, Mastercard’s Deposit Switch lets consumers skip manual paperwork and automatically route their payroll deposits to a new or existing bank account. Deposit Switch safely connects to the top payroll systems in the U.S., allowing consumers to update or redirect their deposit allocations in real-time. The solution includes Atomic’s TrueAuth technology, which allows consumers to link to their payroll provider without having to share credentials with third parties, and can be further enhanced with Mastercard’s identity and fraud prevention services. Financial institutions can simultaneously grow deposits, create primary relationships with their customers and reduce customer acquisition costs.
Simplifying recurring bill payments
Mastercard’s Bill Pay Switch enables consumers to add or update their payment credentials at the merchants and billers they use regularly, such as subscription providers, utilities, telecom and insurance. The solution uses TrueAuth technology to authenticate directly with each provider and update the payment credential on file, all without the hassle of leaving the mobile application or online banking environment they are using. Financial institutions can offer Bill Pay Switch as part of their digital banking experience, in turn improving customer engagement and top-of-wallet spend.
“At Atomic, we’re dedicated to refining the banking experience, ensuring that it’s as seamless and intuitive as possible,” said Jordan Wright, Co-Founder and CEO, Atomic. “By collaborating with Mastercard we’re not just alleviating common pain points, but also empowering consumers to manage their finances more effectively. This partnership allows us to leverage our advanced payroll and merchant connectivity to enhance user experiences. Our goal is clear: to help people manage their money better by providing smarter, more connected financial solutions. These tools are a testament to our commitment to innovation and the betterment of the financial journey for all consumers.”
Mastercard’s global open banking platform and high-quality data connectivity empower consumers and businesses to securely access and share data, driving innovation and financial inclusion on a global scale. Paired with Mastercard’s Open Banking for Account Opening program, Deposit Switch and Bill Pay Switch modernize and secure the digital account journey. Availability of Deposit Switch and Bill Pay Switch are anticipated for 2024.
About Atomic
Atomic is a leading payroll and merchant connectivity platform trusted by over 195 financial institutions and fintech firms, including 13 of the industry’s largest digital-first neobanks and 5 of the top 10 financial institutions. Atomic serves as the essential bridge between consumer data and financial solutions by allowing unparalleled access to payroll, HRIS systems, and merchants, facilitating a range of financial services including direct deposit switching, income and employment verification, and payment method updating.
With over $70 million in backing from trusted investors like Mercato Partners, Core Innovation Capital, Portage, ATX Venture Partners, and Greylock, Atomic is well-positioned to accelerate its vision of financial services that benefit both consumers and institutions. As open banking continues to shape the U.S. financial landscape, Atomic remains committed to empowering consumers to have better control of their personal data, offering a more transparent and equitable banking experience for all. To learn more visit Atomic.financial.
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.
