Mastercard is partnering with Worldpay and Buy Now, Pay Later (BNPL) provider Zip to scale new Open Banking-powered services.

Mastercard said the collaborations would help to enable “more payment choice, empower consumer lending, and modernise account-based payments.”

The partnership with Worldpay will enable consumers to permission their data to be shared between trusted parties and securely pay bills directly from their bank account, it added.

Worldpay will also gain use of Mastercard’s account owner verification capabilities to support merchants in the onboarding process.

With Zip, Mastercard will deploy its Open Banking technology in a bid to improve the real-time underwriting process of the BNPL provider’s lending programme.

Pointing out that Open Banking “cannot be realised without trust” and that consumers in the US and Canada lost $3.2 billion from fraudulently opened accounts in 2022, the payments processor said it would also help by deploying AI to protect more than 125 billion payment transactions each year.

“We’re accelerating our Open Banking connectivity across the US, Australia and Europe, leaning into the breadth of Mastercard’s global network, expertise in data and privacy, and trust of our brand,” said Jess Turner, executive vice president, global Open Banking & API at Mastercard. “We’re providing more payment choice, redefining how identity is established and authenticated, and opening doors to tailored solutions that will revolutionise financial experiences.”

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