Mastercard Incorporated (NYSE:MA) has unveiled Smart Subscriptions, a new tool designed to assist financial institutions in meeting the demands of customers seeking a simplified subscription management solution. Smart Subscriptions builds upon Mastercard’s Subscription Control Solution, launched in 2023, offering comprehensive management features, spend analysis, expense categorization, and personalized offers, all within a single platform.

This strategic move is expected to strengthen Mastercard’s Data & Services offerings. By providing customers with personalized offers, the company aims to increase transaction volume, thereby boosting its revenue. Financial institutions can integrate this tool into their banking apps, enabling customers to easily pause, cancel, or continue their subscriptions.

The enhanced offerings for financial institutions are likely to improve client retention for Mastercard and increase customer engagement with their banking applications. Additionally, financial institutions can expect reduced chargebacks and enhanced customer loyalty. Customers will benefit from improved visibility into their financial well-being, as well as access to personalized offers and insights.

According to a Mastercard survey, 73% of customers expressed interest in a tool that helps identify, track, cancel, or renew subscriptions. Additionally, 60% of customers indicated that they would trust their bank to provide such a tool. Smart Subscriptions consolidates multiple accounts into a central hub using Mastercard’s open banking technology. The tool is designed for easy implementation by banks, requiring only a single, low-lift API.

Mastercard’s stock has gained 34% in the past year, outperforming the industry’s growth of 26.2%.

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