Mastercard has launched an Open Banking-powered subscription management tool that financial institutions can plug into their consumer banking applications.

The payments giant said that Smart Subscriptions allows users to analyse their spending, categorise their expenditure, and receive personalised offers. The tool also uses Mastercard’s subscription technology to enable consumers to cancel, pause and resume subscriptions.

According to recent survey by Mastercard, around 73 per cent of consumers say they would be interested in a tool which helps them identify and track their subscriptions, with 60 per cent of consumers trusting their bank with such a tool.

Mastercard says that the new tool will “drive loyalty and engagement” from consumers who will also benefit from the overview into their financial wellness.

The technology is currently being trialled in the US, with the tool expected to be available across further international markets later this year.

"No matter how many services you pay for, managing those recurring subscriptions should be simple and seamless,” said Raj Seshadri, president of data & services at Mastercard. “Smart Subscriptions acts on that insight, meeting the standards for effortless engagement that both banks and consumers demand. And when those standards are met, the true metric of success is loyalty.”

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