Mastercard Introduces ‘One Credential’ Amid Payment Rivalry
Hey Payments Fanatic!
Last year, Visa made the first move toward a new level of digital payments with its flexible credentials. Now, Mastercard responds with One Credential, a unified digital payment system that allows consumers to manage debit, credit, prepaid, and installment payments under a single credential.
The push for One Credential comes as consumers demand greater control over their finances. Mastercard reports that 65% of Gen Z users prefer managing all payments in one place, with digital convenience shaping their choices. As Mastercard’s Chief Product Officer, Jorn Lambert, puts it, “Today’s consumers expect to be in the driver’s seat.” Now, with One Credential, users can set automated payment rules—debit for everyday purchases, credit for larger expenses, and installments for significant buys all in one app.
Explore more Payments updates below, and I'll be back with more news tomorrow!👇
Cheers,
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INSIGHTS
Fragmented Data: The Silent Threat Undermining Business Performance, by DEUNA. In today’s digital commerce, data flows from multiple sources—checkout systems, ERPs, marketing platforms, and payment networks. Learn how top organizations tackle data fragmentation. Download and read the full report to explore strategies for turning data into a strategic asset.
PAYMENTS NEWS
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GOLDEN NUGGET
𝐃𝐢𝐠𝐢𝐭𝐚𝐥 𝐖𝐚𝐥𝐥𝐞𝐭𝐬 2.0 — adding core banking capabilities 👇
The world of payments is evolving rapidly. Digital Wallets 2.0 are not just about storing money — it's a comprehensive financial hub integrating payments, identity management, security, and even digital assets.
► 𝐓𝐡𝐞 𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐨𝐫𝐲 𝐒𝐡𝐢𝐟𝐭
🔸 𝐈𝐒𝐎 20022 – Replaces legacy payment messaging formats with a data-rich, structured, and standardized approach for payments across banks, PSPs, and even blockchain networks.
👉 Enhances interoperability between networks, including real-time payments and digital wallets.
👉 Enables data enrichment, allowing financial institutions to analyze transaction data for fraud prevention, compliance, and better customer insights.
🔸 𝐒𝐂𝐓 𝐈𝐧𝐬𝐭𝐚𝐧𝐭 (SEPA Instant Payments) – Mandates that all banks and PSPs offering standard euro credit transfers must also provide instant payments within 10 seconds. This requires banks to process payments 24/7 and introduces parity.
🔸 𝐏𝐒𝐃3 & 𝐏𝐚𝐲𝐦𝐞𝐧𝐭 𝐒𝐞𝐫𝐯𝐢𝐜𝐞𝐬 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐢𝐨𝐧 (PSR) – PSD3 builds on PSD2 by reinforcing open banking, fraud prevention, and consumer protection while introducing new regulatory frameworks for FinTechs and non-bank players.
Introducing:
👉 IBAN Name Matching
👉 Fraud Information Sharing: between Banks & PSPs
👉 Better API Performance & Open Banking Evolution
👉 Expands FinTech Access
► 𝐃𝐢𝐠𝐢𝐭𝐚𝐥 𝐖𝐚𝐥𝐥𝐞𝐭𝐬 x 𝐂𝐨𝐫𝐞 𝐁𝐚𝐧𝐤𝐢𝐧𝐠 — The Functionalities
1️⃣ 𝐖𝐚𝐥𝐥𝐞𝐭 𝐑𝐞𝐪𝐮𝐞𝐬𝐭𝐬 & 𝐃𝐚𝐬𝐡𝐛𝐨𝐚𝐫𝐝𝐬 — Users can view, manage, and track incoming and outgoing fund transfer requests in real-time.
2️⃣ 𝐓𝐫𝐚𝐧𝐬𝐟𝐞𝐫 𝐌𝐨𝐧𝐞𝐲 𝐟𝐫𝐨𝐦 𝐖𝐚𝐥𝐥𝐞𝐭𝐬 — Users can send money to existing payees (both internal & domestic) or to new accounts within the same PSP.
3️⃣ 𝐖𝐚𝐥𝐥𝐞𝐭 𝐑𝐞𝐜𝐡𝐚𝐫𝐠𝐞𝐬 — Users can fund their wallets from:
👉 Their own bank accounts.
👉 Other digital wallets (via SEPA Instant Request-To-Pay).
👉 External sources — credit cards, debit cards, or bank transfers.
4️⃣ 𝐏𝐞𝐞𝐫-𝐭𝐨-𝐏𝐞𝐞𝐫 𝐓𝐫𝐚𝐧𝐬𝐟𝐞𝐫𝐬 (Wallet-to-Wallet) — Users can transfer money between wallets within the same PSP using a mobile number
5️⃣ 𝐖𝐚𝐥𝐥𝐞𝐭 𝐃𝐞𝐭𝐚𝐢𝐥𝐬 & 𝐀𝐝𝐯𝐚𝐧𝐜𝐞𝐝 𝐅𝐞𝐚𝐭𝐮𝐫𝐞𝐬
👉 Users can access contract data, including IBANs, identity details, and primary bank account information.
👉 Supports multi-currency accounts for holding different forms of money (including stablecoins).
👉 Enables reward points, interchange commission management, and electronic bill payments
► 𝐓𝐡𝐞 𝐁𝐞𝐧𝐞𝐟𝐢𝐭𝐬
For banks, FinTechs, and businesses looking to stay competitive in digital finance, Digital Wallet 2.0 is no longer optional — it’s a necessity.
🔸 Faster Transactions
🔸 Regulatory Compliance
🔸 New Revenue Streams
Source: Tuum, KPMG, Mia-FinTech
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