In an era where the tap of a smartphone can deliver groceries to your doorstep or stream your favourite show, the way we handle our finances is also undergoing a digital revolution. Mastercard is at the forefront of this transformation, unveiling a groundbreaking cashless payment method that promises to streamline the way people manage their money.
Introducing Mastercard’s One Credential, a cutting-edge solution designed to declutter your digital wallet and simplify your spending. This innovative technology is not just a response to the clamour for convenience; it’s a nod to the growing demand for financial control and savvy budgeting in an increasingly cashless society.
One Credential is designed to be the ultimate financial consolidator, allowing users to merge their debit, credit, prepaid, and Buy Now Pay Later (BNPL) cards into a single digital card. This means that instead of fumbling through a wallet full of plastic or scrolling through multiple apps, you can have one go-to payment method for all your spending needs.
Surin Fernando, Mastercard Australasia’s head of Customer Solutions Centre, spoke to Yahoo Finance about the convenience and control this new system offers. ‘As we move into much more automatic-style payments, the customer is going to have much more control on that, and the payments will happen seamlessly based on the rules that they set,’ he explained.
So, how does it work? If your bank adopts this technology, you’ll find the One Credential feature within your banking app. There, you can merge all your cards and set specific spending limits for each. For instance, you might allocate small everyday purchases to your debit card, while reserving larger expenses for your credit card or a BNPL service. The beauty of One Credential is that it automatically selects the appropriate payment method at checkout, based on your predefined settings.
But the customisation doesn’t end with spending limits. You can also categorise your expenses, directing retail purchases to your credit card, travel costs to BNPL, and your daily caffeine fix to your debit card. The range of customisable categories will depend on your bank’s offerings, but the potential for personalised budgeting is vast.
This new tech is being driven by the preferences of Gen Z, a demographic known for its affinity for innovation and digital solutions. Mastercard’s research indicates that 47 per cent of Gen Z consumers favour novel payment methods, and a significant 65 per cent desire to manage all their financial dealings in one online hub. It’s clear that the younger generation is setting the pace for a personalised, integrated approach to spending.
Jorn Lambert, Mastercard’s chief product officer, emphasises the consumer-centric nature of this development. ‘Today’s consumers expect to be in the driver’s seat,’ he said. ‘That’s what sparked One Credential. It gives people an innovative way to pay that’s truly personalised to them. While Gen Z may be leading the way, the desire for personalisation spans generations.’
As for when Australians can expect to embrace One Credential in their daily transactions, the timeline remains uncertain. However, the Bendigo and Adelaide Bank group, including the digital bank Up, has already committed to implementing the technology. Other financial institutions may be watching closely to see if they’ll join the movement, enticed by the promise of a more streamlined and thoughtful spending experience for their customers.
Mastercard is optimistic that One Credential will assist Australians in achieving their budgeting goals by automating the decision-making process behind each purchase. With the cost of living on the rise, Fernando sees this as an opportunity for consumers to regain control, enabling them to save and spend according to their preferences, all while enjoying the flexibility of their various payment options.
Would you want your bank to offer the same option? Why or why not? Are you concerned this is another step towards a more cashless Australia? Drop your comments below and join the conversation!
Also read: From cashless to cardless? Your phone could be the only wallet you need!
It sounds intriguing but i don’t think many would use it.
I can’t see why you wouldn’t just put all spending on the same card.
More and more automation is making people less and less personally responsible and destroying their capacity to think, reason, and make intelligent informed decisions. Technology is turning the population into morons!
Just draw up a budget, calculate how much you need for regular bills and set that aside every month in a bank account for the purpose, set aside an amount of cash each pay period for personal spending, put all other spending on your credit card and pay your credit card in full every month to avoid interest and risks of overspending or use a debit card exclusively. It’s incredibly simple. Relying on technology implies all kinds of risks.
No, No, No not for me. One must have a set budget to make sure you know how much you spend; what you spend the money on, and what your bank balance is each month. This way one can save money and not be in debt.
This will definitely make you poorer. You will end up paying more in fees and charges.
I certainly hope Bendigo and Adelaide banks don’t implement this. I don’t want a computer deciding which account my item comes out of, I do.
Bendigo has already been mentioned in many articles, where they weren’t helpful in preventing fraud and they want to do this. They need to get their priorities right for their existing customers.
If that one card is compromised, are all accounts locked down?
As they and other banks have shut branches, how will customers deal with fraud on that one card, if they want to take cash out or buy items using that card?