JP Morgan is partnering with Mastercard to allow customers to pay using their bank account information instead of cards.
Pay-by-Bank is an automated clearing house (ACH) payment which uses Open Banking to allow customers to give permission for their financial data to be shared between trusted parties.
Mastercard also recently announced new partnerships with with Adobe, McAfee and Priority Pass.
Mastercard said that the Pay-by-Bank system will mean customers no longer need to type in account details each time they need to pay a bill.
The company added that merchants will also benefit, as consumer onboarding is automated. Mastercard says the risk and costs of storing bank account information are also reduced.
Pay-by-Bank is being trialled with US-based merchants, with the partnership aiming to expand the scheme to more locations in 2023.
Commenting on the news Max Neukirchen, head of payments & commerce solutions at JP Morgan Payments said: “We will offer an attractive, simple and secure Pay-by-Bank solution that gives choice to our clients and their customers who use ACH as their payment mechanism. This is part of J.P. Morgan Payments’ vision to accept any payment, anytime, anywhere.”
He added: “The technology behind Pay-by-Bank reduces the likelihood of unauthorised transactions and frees our clients from the need to retain — and the responsibility to securely maintain — consumer banking information.”
The move comes after JP Morgan unveiled plans to double the workforce of its UK digital bank Chase.
The online-only bank currently has 1,000 UK based employees.
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