2 July 2020 – Mastercard announces three key financial firms as the latest companies to start using Mastercard Open Banking Protect, safeguarding organisations who manage customer accounts against compromised or unauthorised third-party providers (TPPs).
Aion, DiPocket and Modulr have all signed agreements to use the Protect solution, which is a key component of Mastercard’s Open Banking Solutions™ portfolio of market-leading applications and services to underpin, enable and safeguard the open banking ecosystem across Europe.
PSD2 legislation in Europe allows TPPs to access bank accounts, with a customer’s consent, to provide new products and services; however, the account holding institutions remain liable for the funds. It is therefore important for financial institutions quickly to verify open banking requests from TPPs, with whom they may have no prior relationship, and that robust systems are in place to detect warning signs of potential fraud early on.