JP Morgan And Mastercard Present Pay-by-Bank Services

JP Morgan and Mastercard are collaborating on a solution that leverages open banking to enable clients to pay using their bank account information rather than a card.

The Pay-by-Bank service allows ACH payments that use open banking, allowing clients to authorise the sharing of their financial information with other parties in order to pay bills directly from their bank account.

This eliminates the need for clients to enter their routing and account information each time they pay a payment.

It streamlines customer onboarding and decreases the risk and expense of keeping bank account information for billers and merchants. According to J.P. Morgan, the service will be especially useful for recurring payments.

Pay-by-Bank is presently being tested by a select group of billers and merchants prior to its rollout next year.

Max Neukirchen, head, payments and commerce solutions, JP Morgan Payments says: “We’re delighted to work with Mastercard on this solution as their open banking capabilities will transform the payment experience.

“Together, 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.”