(Boursier.com) — By partnering with Subaio, Mastercard now offers an easy and secure way to identify recurring payments and cancel them through trusted apps and online banking! Meal boxes, treat boxes for animals or streaming and video game services, the subscription offer has never been as abundant as it is today… In the United States, for example, consumers have on average 12 subscriptions to multimedia and entertainment services; this figure even rises to 17 for millennials.
The subscription industry is booming and is expected to be worth $1.5 trillion by 2025…Yet with the increase in these types of transactions, it is increasingly difficult for consumers to track or to terminate their growing recurring payments. According to Mastercard data, recurring payments account for 21% of all chargebacks, which affects both merchants and issuers.
Mastercard has partnered with Subaio, a former participant in Start-Path, Mastercard’s acclaimed startup support program, to make it easy for consumers to unsubscribe from services they no longer need. This solution gives consumers visibility into their subscriptions and recurring payments within their digital banking platform, regardless of the payment method chosen. No more leaving one app and logging into another, consumers can unsubscribe directly in their digital banking app.
“Today, more than ever, consumers want better visibility into their monthly spending,” said Ajay Bhalla, President Cyber & Intelligence at Mastercard. “This solution allows consumers to directly control the payment of their subscriptions through a single and reliable source. The power is back in the hands of the consumer.”
“Based on our long experience with Mastercard, we enable consumers to make informed financial decisions in this new subscription sector,” said Frederrick Hamaan, CCO of Subaio. “We provide users with a seamless experience to control their subscriptions and payments to meet the rapidly changing needs of consumers. Our solutions reflect our strong commitment to this digital generation and support the growth of our partners.”
Financial institutions that allow consumers to better control their spending can reduce operational costs. For their part, merchants and issuers can also avoid the cost of litigation and reduce the pressure on call centers.
This partnership is part of Mastercard’s more global strategy, which aims to implement new solutions that focus more on the consumer, in all aspects of their experience. When consumers have the ability to manage and discover subscriptions tailored to their everyday needs, issuers and merchants are in the best position to create and maintain partnerships that last for the long term.
Mastercard’s solution is now available for banks in North America and Europe. Through a single API, financial institutions can offer their customers a tracking device for their subscriptions, and the ability to view their digital invoices and merchant contact details. This device greatly simplifies digital financial transactions for consumers.
Mastercard and Subaio have a proud history of collaboration and innovation. Subaio joined Mastercard’s Start Path Program in 2020, then partnered with Aiia, a leading Open Banking Mastercard Group company, to enable financial institutions to automate their solvency operations.