By Sarah Clark
Mastercard has launched One Credential, a new digital-first approach to financial management that gives cardholders the ability to preset how each of a range of different types of purchases will be funded, whether that’s a debit from their bank account, an instalment plan, a prepayment or a credit card arrangement.
Tailored to meet the needs of Gen Z consumers, the service is live today with Wio Bank in the UAE and is set to go live later with Bendigo and Adelaide Bank group in Australia.
Payments providers Episode Six, Galileo Financial Technologies, i2c, Lithic and Marqeta have also all committed to supporting the new service.
“With One Credential, consumers will be able to choose the payment option (which may include debit, instalments, prepaid or credit) that’s best for them, all through a seamless digital experience,” Mastercard explains.
“Here’s how it works. Imagine a financially independent consumer in her 20s named Erica. With One Credential, Erica can tailor her payment preferences, so they’re optimized for her household expenses.
“She can choose to pay for daily expenses under US$100, like groceries and fuel, from her checking account; charge expenses over US$100 to credit; and pay for the occasional larger purchase via instalments. Erica can set her preferences online or in an app, with full control over how each transaction is funded and a holistic view of her spending.”
“For issuing banks, One Credential provides a differentiated offering that is especially appealing to younger consumers who seek digital, personalized payment experiences and are planning their financial futures. Mastercard also plans to roll out One Credential for small businesses, empowering them with more choice and control over how they pay.”
“Today’s consumers expect to be in the driver’s seat,” Mastercard’s chief product officer, Jorn Lambert explains. “That’s what sparked One Credential. It gives people an innovative way to pay that’s truly personalized to them. While Gen Z may be leading the way, the desire for personalization spans generations.”
