The newly minted Pay-by-Bank partnership between J.P. Morgan Payments and Mastercard is an ACH payment that uses open banking.
This payment solution authorizes consumers to permit their financial data to be shared between trusted parties to pay bills directly from their bank accounts.
Should you begin saying ‘goodbye’ to writing checks, paying with cash, and charging your cards to pay the bills, or say ‘hello’ to Pay-by-Bank? With J.P. Morgan and Mastercard collaboration, you will no longer need to type in routing and account numbers every single time to pay a bill.
Think about all the payments you pay every month. Month after month, year after year. Mortgage, rent, utilities, insurance, cable, cell phone, this, that, and on and on; it never ends. Pay-by-Bank is a much safer and more secure way to pay without storing your bank account information.
J.P. Morgan Payments’ Head of Payments & Commerce Solutions Max Neukirchen says, “The technology behind Pay-by-Bank reduces the likelihood of unauthorized transactions and frees our clients from the need to retain — and the responsibility to securely maintain — consumer banking information,”
How does Pay-by-Bank work?
Billers whose consumers already pay with ACH can merge the J.P. Morgan payments Pay-by-Bank Solution on their existing payments page.
At checkout, you select ‘Pay-by-Bank.’ Then will be prompted to find your bank and confirm by you using your bank’s authentication process. This will securely share your bank account information with J.P. Morgan and Mastercard to finalize the payment on behalf of the biller.
In an internal memo, Max Neukirchen quotes, “While Pay-by-Bank is not new to the industry, our collaboration with Mastercard, a long-time trusted partner, will differentiate our approach. We both share a commitment to payments modernization using the latest technology to make experiences simple and secure”.
“Billers and consumers both get greater payment choice,” says Chiro Aikat, executive vice president of Merchants & Acceptance, Mastercard North America, “but the partnership also propels payments innovation on two fronts — in the ease of the user experience and the security of data sharing.”
“Together, we will offer an attractive, simple, and secure Pay-by-Bank solution that gives a choice to our clients and customers who use ACH as their payment mechanism. This is part of J.P. Morgan Payments’ vision to accept any payment, anytime, anywhere.”
J.P. Morgan Payments and Mastercard’s new payment solution is currently being piloted with a small number of US-based billers and merchants, with a rollout expansion expected sometime in 2023.
“We realized years ago that the way people think about money and commerce is changing,” Aikat says. “They want to pay and get paid how they choose, where, and when. We’re excited by this new partnership with J.P. Morgan Chase and our opportunity to empower people with enhanced payment experiences.”
Ricquel Newman is a freelance journalist in the San Francisco Bay Area. Prior she was a past journalist for the award-winning consumer news unit, "Seven On Your Side" at ABC7 News in San Francisco. During her 15-year career with ABC News, she produced, managed, and handled all social media for the department. A two-time Emmy Nominee for undercover investigations and light news story features. She is a past radio producer for The Costa Report, a nationally syndicated radio show. Ricquel has a strong passion for news, writing, and creating. She also started her own PR Company at one point. She studied Radio and Television with an emphasis on Broadcast Journalism at San Francisco State University.