With OneCredential, MasterCard centralizes payment solutions

MasterCard just formalized a new offer presented as a simple and practical solution to optimize the payment experience of its customers. Named One Credential, it is intended for all MasterCard customers to help them gain flexibility when they pay for their purchases. Nevertheless, it defends an affinity positioning, with a particular focus on young people from generation Z.

FACTS

• Mastercard One Credential is presented as a solution capable of providing increased flexibility to access and manage multiple payment modes from a single area accessible via a single identifier. This space is based in form on a unified payment platform.

• This platform actually brings together a variety of payment methods, such as debit, credit, prepaid and payment options in several ways.

• This allows users of the service to view and centralize all their payment methods, then customize their usage preferences according to the type of transaction and the amount.

• Mastercard One Credential allows them to set automatic triggers for each means of payment by debiting the current account of the users of the service to pay daily expenses of less than 100 euros or by preferring to unlock a credit card or an offer from BNPL for larger purchases for example.

• A mobile application as well as an online platform are available to service users to facilitate settings and control associated payment methods.

• MasterCard highlights the relevance of its new service thanks to its already signed partnerships with several payment service providers as well as financial institutions such as Wio Bank, Episode Six, Galileo Financial Technologies, i2c, Lithic or even Marqeta.

ISSUES

• Meeting the needs of young people: According to a Mastercard study, 65% of the Z generation wants to manage its finances online from a single connection point. MasterCard today justifies the deployment of One Credential as a way to meet the needs of young people, especially in the Z generation (now around 25 years old) who are looking for simplified financial management, thanks in particular to personalized digital experiences.

• Responding to competition : The launch of One Credential by Mastercard is also a way for the US payment giant to respond to its main competitor: Visa. The Scheme submitted Indeed, since May 2024 its functionality "Visa flexible Credential" as a solution capable of reinventing the use of payment cards by allowing users to choose from different sources of financing during a transaction. However, Mastercard One Credential seeks to distinguish itself by its integrated approach and its ability to offer extensive customisation of payment preferences.

PERSPECTIVE

• In addition to the US schemes, the mobilisation of payment actors to propose integrated, functional and simplified solutions continues. And the problem concerns international actors.

• Just a few days ago, it was the Fintech Treezor, French reference for Banking-as-a-Service (BaaS), which submitted its own feature on the theme. Named Card Account Selection (CAS), it allows you to associate a payment card with different accounts. Offered in BtoB, to companies and FinTechs, the solution must help them manage the expenses of individuals as well as employees as part of their professional expenses.

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