JP Morgan Payments and MasterCard have launched Pay-by-Bank to allow consumers to authorize the sharing of their financial data so that they can pay their bills directly from their bank account.
The service means consumers won’t need to enter their route and account information when making recurring payments, such as rent, utilities, tuition and insurance.
Pay-by-Bank also uses Mastercard’s intelligent payment decision tools to analyze the best time to initiate payment based on the bill payer’s historical transaction behavior and risk patterns.
It is being piloted this year with a small number of US-based billers and merchants, with plans to expand in 2023.
“Pay-by-Bank reduces the likelihood of unauthorized transactions and frees our customers from the need to store – and the responsibility to store securely – consumer banking information.
We are delighted to work with Mastercard to offer an attractive, simple and secure Pay-by-Bank solution that gives choice to our customers and their customers who use ACH as a payment mechanism,”
said Max Neukirchen, Head of Payments and Commerce Solutions, JP Morgan Payments.
“Billers and consumers both benefit from greater payment choice, but the partnership also propels payments innovation on two fronts – in the ease of user experience and in the security of data sharing,”
said Chiro Aikat, executive vice president, merchants and acceptance, Mastercard North America.