J.P. Morgan Partners with Mastercard to Launch Pay-by-Bank to Modernize Account-based Payments

J.P. Morgan Payments is teaming up Mastercard to launch Pay-by-Bank, an ACH payment that uses open banking to enable consumers to permission their financial data to be shared seamlessly between trusted parties to let them pay bills directly from their bank account with greater security.

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Customers will no longer need to type in routing and account numbers each time they need to pay a bill. For billers and merchants, it automates consumer onboarding and reduces the risk and cost of storing bank account information.

J.P. Morgan Payments and Mastercard are piloting Pay-By-Bank with a small number of U.S.-based billers and merchants this year and expect to expand in 2023. 

"Our aim is to stay at the forefront of payments innovation," said Max Neukirchen, head of Payments & Commerce solutions, J.P. Morgan Payments. "We're delighted to work with Mastercard on this solution as their open banking capabilities will transform the payment experience. Together, we will offer an attractive, simple and secure Pay-by-Bank solution that gives choice to our clients and their customers who use ACH as their payment mechanism. This is part of J.P. Morgan Payments' vision to accept any payment, anytime, anywhere." 

"Billers and consumers both get greater payment choice," said Chiro Aikat, executive vice president, Merchants & Acceptance, Mastercard North America, "but the partnership also propels payments innovation on two fronts — in the ease of the user experience and in the security of data sharing."

"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," Neukirchen said.