How the Zeta and Mastercard Partnership Will Affect Credit Card Processing
More than 191 million Americans own a credit card, so it makes perfect sense for businesses to have the capability of processing credit card payments through high-risk merchant accounts.
But the industry might experience some changes soon with the partnership between one of the largest credit card companies in the world and a unicorn tech company that’s set to use new technology in payment processing.
The Mastercard and Zeta Partnership
Mastercard recently announced a five-year partnership with Zeta, a banking tech company that provides next-gen credit processing solutions to banks and FinTech companies around the world.
Zeta’s co-founder and CEO Bhavin Turakhia explained:
“With Zeta’s next-gen credit card processing platform, we are fundamentally rewiring how issuers launch credit card programs by offering new paradigms over legacy mainframe systems.”
He also talked about the benefits that this will bring to Mastercard cardholders:
“Amongst other benefits, our stack allows issuers to increase the lending book by composing contextual upsells using our extensive APIs and SDKs; reduce costs via pay-as-you-go Saas billing; launch and iterate faster using our infinitely scalable cloud-native deployment. In Mastercard, we have a partner that is committed to undertaking this journey with us and truly believes in this mission.”
At the heart of this partnership is to “go to market jointly to launch credit cards with issuers worldwide on Zeta’s modern, cloud-native, and fully API-ready credit card processing stack.”
What This Means For Credit Card Processing
Although the payment processing industry is doing excellent as it is, there is always room for improvement and technology will play a big factor in future innovations in credit card payment processing.
Mastercard has been at the forefront of bringing some of the best credit card solutions on the market, from its fraud and risk capabilities to its digital issuance solutions.
This partnership will take those capabilities a notch further by incorporating technology that will allow more seamless and flexible credit card processing in the future. The goal of this partnership is to offer a system that’s responsive enough to fit the changing needs and preferences of Mastercard cardholders.
Mastercard’s Executive Vice President for Products and Innovations in Asia Pacific Sandeep Malhotra explained:
“As people shop and bank online more than ever before, Mastercard is partnering with Zeta to provide issuing banks and fintech innovators with modern credit card processing capabilities at scale that will maximize the safety, security, and convenience of e-commerce, online banking, and contactless transactions. By deploying Zeta’s credit processing stack, issuers will have an opportunity to grow their user base, drive higher usage, and enter new geographical markets, all while accelerating the cashless revolution around the world.”
The Future of Payment Processing
Technology will continue to play a huge role in the evolution of the payment processing industry. The partnership between Mastercard and Zeta, especially with the credit card giant making a sizable $30 million investment in the unicorn company, is the beginning of great things to come for payment processing.
