Deutsche Bank and Mastercard Partner on Pay-by-Bank Solutions in Europe
Deutsche Bank and Mastercard partnered to enable merchants across Europe to offer pay-by-bank functionality to their customers.
The partnership will enable merchants to offer this functionality through Deutsche Bank’s Merchant Solutions, with the account-to-account payments based on Mastercard’s open banking network, the companies said in a Tuesday (June 3) press release.
“This partnership with Mastercard marks a pivotal moment in the growth of open banking,” Deutsche Bank Global Head of Merchant Solutions Kilian Thalhammer said in the release. “Together, we are delivering innovative merchant solutions that reflect the needs of a digital-first economy — secure, instant and built for scale.”
The integration of Mastercard’s open banking technology into Deutsche Bank’s platform will support faster settlement, enhanced reconciliation and greater payment transparency, according to the release.
It will enable merchants to use the bank’s Request to Pay (R2P) service as a preferred method, allowing consumers to authorize payments directly from their bank accounts and receive immediate confirmation, per the release.
“With the further expansion of our partnership, we combine our open banking payments technology with Deutsche Bank’s payments expertise and big merchant base across Europe, and together we’re shaping a future where account-based payments are becoming the new norm,” Valerie Nowak, executive vice president and head of Open Banking Mastercard Open Banking Europe, said in the release.
Open banking powered 27 million payments in the United Kingdom during March, according to Open Banking Limited.
“Open banking has already transformed the payments landscape in the past seven years, with uptake of account-to-account payments showing strong growth,” the group said in a May 2 press release.
In the United States, 46% of consumers said they would be highly willing to use open banking payments, although only 11% have actually done so, according to the PYMNTS Intelligence report “Consumer Sentiment About Open Banking Payments.”
The report found that millennials are especially interested in the payment method, with 66% of these consumers saying they would be highly willing to use open banking payments.
Mastercard said in October that 76% of its customers connect their financial accounts, and 93% said having control over how their financial data is used is of “paramount importance.”
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