A US-based banking and payments solution company, i2c, has partnered strategically with Mastercard to become one of the first issuing processing partners for the newly introduced Mastercard One Credential.
This partnership is a big step that will enable issuers to offer their customers a streamlined choice among payment options such as credit, debit, prepaid, and BNPL (buy now, pay later), all under a single credential. This deal involved collaboration with multiple customers and partners, including Episode Six, Bendigo and Adelaide Bank group, i2c, Galileo Financial Technologies, Marqeta, Lithic, and Wio Bank.
This announcement arrives just one week after Mastercard launched One Credential, which integrates various payment methods into a single digital connection.
Key Takeaways
- i2c’s partnership with Mastercard allows it to become one of the first issuing processing partners for One Credential, which integrates various payment methods like credit, debit, prepaid, and BNPL into a single digital connection. Offering users a single credential for multiple payment options will simplify and enhance the payment process.
- The introduction of One Credential by Mastercard, supported by i2c, aims to provide a more streamlined and personalized payment experience. It enables consumers to manage multiple payment methods through a single platform, catering to the demand for greater flexibility and control in financial transactions.
- The development and implementation of One Credential involved collaboration with various partners and customers, including well-known fintech companies and financial institutions like Episode Six, Bendigo and Adelaide Bank group, Galileo Financial Technologies, Marqeta, Lithic, and Wio Bank. This collaborative approach ensures a robust integration into existing financial ecosystems and a smooth rollout of the new technology.
- Launched just a week after Mastercard unveiled One Credential, this partnership is timely and aligns well with the evolving needs of consumers, particularly younger, digitally-savvy generations who prefer managing financial transactions digitally and all in one place. This move by i2c and Mastercard caters to these preferences, promising to enhance user engagement and satisfaction.
Mastercard Launches One Credential to Simplify and Personalize Digital Payments
Mastercard has introduced an innovative solution known as One Credential, aiming to streamline and personalize consumers’ payment experience. This digital-first approach allows users to consolidate multiple payment methods—such as debit, credit, prepaid, and installments—into a single, unified platform. By doing so, Mastercard addresses the growing demand for flexibility and control in financial transactions, particularly among younger, digitally native consumers.
One Credential empowers users to customize their payment preferences based on transaction type and amount. For instance, a user can set daily expenses under $100 to be debited directly from their checking account, charges over $100 to be applied to a credit account, and select larger purchases to be paid via installment plans. These preferences can be configured through an online portal or mobile application, providing a comprehensive overview of spending habits and enhancing financial management.
Mastercard has collaborated with several financial institutions and fintech companies to bring this solution to market. Notable partners include Episode Six, Bendigo and Adelaide Bank group, i2c, Galileo Financial Technologies, Marqeta, Lithic, and Wio Bank. These collaborations are pivotal in integrating One Credential into existing financial ecosystems and ensuring a seamless user experience.
i2c Inc., a leading payments and banking technology provider, plays a significant role in facilitating the adoption of Mastercard’s One Credential among its clients. By leveraging i2c’s advanced payment processing infrastructure, financial institutions can efficiently implement One Credential, offering their customers enhanced payment flexibility and control. This partnership underscores i2c’s commitment to delivering innovative payment solutions that cater to consumers’ evolving needs.
Amir Wain, CEO and Founder of i2c Inc., noted that modern consumers demand instant control over their payment methods and readily adopt new solutions when offered more flexibility. He views the Mastercard One Credential as a pivotal development in the shift toward consumer-centric payment options. Wain emphasized that issuers who proactively adapt to these changes will set the pace in the industry. He argued that the key benefit for issuers is to upgrade their payment systems now, ahead of these innovations becoming widespread standards. By delivering a tailored and frictionless payment experience, issuers strengthen customer loyalty, increase transaction volumes, and maintain a competitive edge in a market that highly values choice and convenience.
The launch of One Credential is especially relevant today as it corresponds with the preferences of Generation Z consumers. Known for their digital fluency, Generation Z shows a strong preference for digital payment solutions. Mastercard’s recent studies reveal that nearly half of this generation favors new and innovative payment methods, with 65% wanting to manage all their financial transactions from a single online platform. Although cautious with their finances, Generation Z members are more inclined to spend rather than save, paying close attention to their purchases’ value and personal relevance. Personalization in payment options is notably significant to them, being 1.31 times more crucial than other generations globally.
Additionally, One Credential tackles the obstacles Generation Z encounters in establishing credit. Despite their strong inclination towards digital wallets and aspirations to build credit, they maintain the lowest average credit score among all generations in the US. This is primarily due to their thinner credit histories and hesitancy towards traditional borrowing methods.
Only half of Generation Z consumers use credit, marking the lowest utilization rate among all age groups. Using credit responsibly is essential for developing a positive credit history and achieving key life goals like renting an apartment, purchasing a vehicle, or securing a mortgage. Almost 70% of GenZs are actively working to improve their credit scores, yet over half are unsure how to begin this process. There is a clear need for innovative digital tools that guide Generation Z toward creditworthiness and financial well-being while providing them with options and autonomy in their financial decisions.
Bunita Sawhney, Chief Consumer Product Officer at Mastercard, expressed enthusiasm about the ongoing collaboration with i2c, highlighting their long-standing partnership on introducing payment innovations. She is excited about continuing this collaboration as i2c becomes one of the initial issuer processing partners for the Mastercard One Credential. Sawhney emphasized that Mastercard and i2c are committed to their joint mission of offering greater payment flexibility to both consumers and issuers.
On February 19, Mastercard announced the launch of its new service, One Credential, which is now operational in the United Arab Emirates (UAE) in collaboration with the digital banking platform Wio Bank and various key clients and partners dedicated to introducing this digital credential to users.
One Credential allows users to select their preferred payment method—whether debit, credit, installments, or prepaid—by setting their preferences online or through a mobile application, depending on the type and timing of transactions.
Mastercard is also preparing to offer small businesses a broader range of payment options through One Credential.
One Credential provides a tool for issuing banks that enhances customer understanding and transparency regarding their financial activities and helps them plan their financial future effectively. This tool is designed to adapt and grow with customers throughout different stages of their lives.
With One Credential, i2c enables financial institutions to offer a more personalized and flexible payment experience, catering to the diverse needs of modern consumers. This partnership benefits individual users and positions financial institutions to stay competitive in a rapidly changing market.
About i2c Inc.
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i2c Inc., founded in 2001 and headquartered in Silicon Valley, is a global fintech leader known for delivering highly flexible and secure banking and payment solutions. The company’s proprietary “building block” technology provides financial institutions and fintech startups. It brands the agility to create, launch, and manage customized credit, debit, prepaid, and lending products seamlessly through a single unified platform.
With a significant international presence, i2c serves millions of users worldwide, offering comprehensive card issuing and processing capabilities and Banking as a Service (BaaS) solutions. Under the leadership of founder and CEO Amir Wain, i2c continues to excel in scalability, adaptability, and innovation, empowering clients to adjust rapidly to evolving market demands and confidently expand their financial offerings.
Conclusion
The partnership between i2c and Mastercard marks a significant step in advancing digital payments by introducing One Credential. By integrating multiple payment methods into a single digital credential, this collaboration provides consumers with greater flexibility, control, and convenience. Financial institutions partnering with i2c can leverage its advanced processing capabilities to adopt this new solution efficiently, meeting the evolving expectations of digitally driven customers.
As One Credential gains traction, it is expected to reshape how consumers manage payments, particularly among younger generations seeking personalized and seamless financial experiences. With i2c playing a key role in its implementation, financial institutions have an opportunity to enhance customer engagement, increase transaction volumes, and stay competitive in a rapidly evolving payments market.
