A new joint solution by Mastercard and Subaio offers a simple, secure way to identify unwanted recurring payments and unsubscribe from them via banks’ trusted apps and online servicing
Payment service provider Mastercard has announced it joined forces with Subaio, a SaaS provider of white-labelled services for online banking platforms, to empower consumers to unsubscribe from unwanted services.
The new joint solution gives consumers greater visibility into their subscriptions and recurring payments within their chosen digital banking platform. Regardless of the payment method used, customers won’t need to switch between apps to unsubscribe from undesired services. They can now cancel subscriptions directly within their digital banking app.
The companies note that “Now more than ever, people want greater visibility over their monthly spending.” The subscription economy is expected to reach $1.5 trillion by 2025, according to the press release.
A growing number of global companies are introducing subscription services. This year alone, Meta launched a subscription service on games for VR headsets while Twitter rolled out a subscription feature enabling users to monetize content.
Meanwhile, in the U.S. alone, consumers have an average of 12 media and entertainment subscriptions. The number is higher for millennials who have 17 various subscriptions on average. Therefore, it’s hard to track all the services and recurring payments which may result in unwanted expenses.
The new solution gives consumers control over their subscription payments with a smooth, hassle-free experience via a single trusted source. “This puts power back where it belongs — with the consumer,” says Ajay Bhalla, president, Cyber & Intelligence, Mastercard.
Currently, Mastercard’s solution is available to financial institutions in North America and Europe through a single API. Partner organisations can simplify their customers’ lives with subscription control, as well as an overview of digital receipts and merchant details when it comes to recurring payments.
Mastercard notes that financial institutions giving consumers better control over their spending can reduce operational costs, while merchants and issuers can avoid the cost of disputes and alleviate pressure on call centres.