JP Morgan and Mastercard have announced the launch of their Pay-by-Bank solution, giving billers the ability to allow their customers to pay bills directly from their bank account, using traditional ACH banking rails.
The product draws on Mastercard’s open banking technology, and is hoped to improve the bank’s Payments’ ACH capabilities. The Pay-by-Bank partnership between JP Morgan and Mastercard began in November 2022, and is expected to not only offer improved customer experience, convenience and speed, but also reinforce security.
Billers whose customers already pay with ACH can enable the Pay-by-bank solution on their existing payments page. By selecting “Pay-by-bank,” consumers will be prompted to choose their bank and agree to securely share their bank account information through Mastercard’s open banking platform for recurring payments.
“We are dedicated to enabling our clients to offer their customers a variety of payment options,” said Max Neukirchen, head of payments and commerce solutions, JP Morgan. “Our partnership with Mastercard will allow for easy and secure payments directly from bank accounts. We are excited for the future as we have a robust pipeline of biller clients across the U.S. interested to use our Pay-by-bank offering seeking to digitize their processes and increase payments efficiency.”
Verizon will pilot the solution with US customers in the coming months.
Darrell Conn, executive director, Verizon commented: "This innovative payment option aligns with our commitment to providing our customers with convenient and secure payment choices. We believe that Pay-by-bank will enhance the overall customer experience, making it easier and more efficient for our customers to pay their bills.”