Mastercard Partners with Atomic to Simplify Direct Deposit and Bill Payment Updates

Friday, June 7, 2024

Mastercard has integrated Deposit Switch and Bill Pay Switch into its Open Banking platform, allowing consumers to automatically update direct deposits and recurring bill payments when opening or updating digital accounts. These solutions, delivered in partnership with Atomic—a leader in payroll and merchant connectivity solutions and a member of Mastercard’s Start Path program—provide a streamlined and secure account management experience. With a single integration to Mastercard Open Banking, customers can access a comprehensive suite of account opening and funding solutions leveraging open banking, payroll, and merchant data connections.

State of Online Banking

A study on mobile account opening revealed that automated deposit switching is the most sought-after feature by consumers. However, the current process still involves manual paperwork and lengthy HR approval times. Meanwhile, financial institutions are increasingly focused on growing deposits and achieving primacy with their customers. Research indicates that nearly 80 percent of banking executives view deposit growth as a crucial aspect of the account onboarding experience.

“Digital consumers are looking for maximum value from their bank account, which includes simplified and modernized processes for tedious tasks like rerouting direct deposits and paying bills,” said Silvana Hernandez, Executive Vice President, Mastercard, North America. “We also know that Gen Z in particular is leaning into debit as a preferred payment for everyday expenses, so providing a secure, seamless online banking experience through open banking connectivity will ultimately help drive account primacy for financial institutions.”

Simplifying Direct Deposit Switching

Mastercard’s Deposit Switch, embedded directly within a financial institution’s app or website, eliminates the need for manual paperwork by allowing consumers to automatically route their payroll deposits to a new or existing bank account. This solution connects securely to the top payroll systems in the U.S., enabling real-time updates and redirections of deposit allocations. Leveraging Atomic’s TrueAuth technology, consumers can link to their payroll provider without sharing credentials with third parties. This feature can be enhanced with Mastercard’s identity and fraud prevention services, helping financial institutions grow deposits, foster primary customer relationships, and reduce acquisition costs.

Streamlining Recurring Bill Payments

Mastercard’s Bill Pay Switch allows consumers to add or update their payment credentials with regular merchants and billers, including subscription services, utilities, telecom providers, and insurance companies. Utilizing TrueAuth technology, the solution authenticates directly with each provider to update payment credentials without requiring consumers to leave the mobile application or online banking environment. Financial institutions can integrate Bill Pay Switch into their digital banking services, enhancing customer engagement and promoting top-of-wallet spending.

“At Atomic, we’re dedicated to refining the banking experience, ensuring that it’s as seamless and intuitive as possible,” said Jordan Wright, Co-Founder and CEO, Atomic. “By collaborating with Mastercard we’re not just alleviating common pain points, but also empowering consumers to manage their finances more effectively. This partnership allows us to leverage our advanced payroll and merchant connectivity to enhance user experiences. Our goal is clear: to help people manage their money better by providing smarter, more connected financial solutions. These tools are a testament to our commitment to innovation and the betterment of the financial journey for all consumers.”

Mastercard’s global open banking platform and high-quality data connectivity empower consumers and businesses to securely access and share data, driving innovation and financial inclusion worldwide. Combined with Mastercard’s Open Banking for Account Opening program, Deposit Switch and Bill Pay Switch modernize and secure the digital account journey. These solutions are anticipated to be available in 2024.