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Mastercard Launches Open Banking Powered Smart Subscriptions

Smart Subscriptions plugin leverages Mastercard Subscriptions Control solution, introduced in 2023, that allows consumers to cancel, pause and resume their subscriptions.

Mastercard Launches Open Banking Powered Smart Subscriptions

Mastercard unveiled its new open-banking-powered subscription management solution, Smart Subscriptions, on March 12.

Smart Subscriptions is a white-labeled solution configured in a way that allows any bank to implement it with a single, low-lift API.

The plugin solution can be easily embedded into consumer banking applications. The new subscription manager offers both basic functions like cancelling, pausing and resuming subscription plans, and more sophisticated features including individual spend analysis, expenditure categorisation, and personalised merchant offers.

To connect multiple accounts into one central hub, Smart Subscriptions use Mastercard’s open banking technology, provided by its U.S. open banking arm Finicity. In 2023, this open banking platform was improved with advanced analytics.

Smart Subscriptions offer benefits to both financial institutions and end customers. While banks and fintechs can drive loyalty, increase engagement, and reduce chargebacks, consumers receive a simple interface providing greater budget visibility and access to personalized insights and offers.

“No matter how many services you pay for, managing those recurring subscriptions should be simple and seamless. 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.”

Raj Seshadri, president of Data & Services at Mastercard

The service pilots in the U.S. and is expected to reach additional markets later this year. It aligns with public demand for a tool that helps identify, track, cancel, or renew subscriptions within the typical banking app. According to a Mastercard survey, 73% of consumers are interested in subscription management, and 60% of consumers would trust their bank with such a tool.

Earlier this year, Mastercard introduced a new core benefit program for select U.S. debit and prepaid products, designed to streamline and secure account opening with open banking capabilities.

Nina Bobro

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Nina is passionate about financial technologies and environmental issues, reporting on the industry news and the most exciting projects that build their offerings around the intersection of fintech and sustainability.