Mastercard is looking to AI and open banking for transaction monitoring, data standardization, and even to predict payments success. 

“We are very cautious and safe in the way we use AI” throughout the institution,” Jess Turner, head of global open banking and API at Mastercard, said Aug. 28 at Fintech South 2024 in Atlanta. Mastercard has implemented AI for predictive analytics, for example, she said. 

The global payment giant is tapping AI within its Payment Success Indicator, which uses models to predict the success of an Automated Clearing House payment, she said. “We can tell you what the success factor will be for that ACH to clear and which days it might clear, and we do that leveraging AI.” 

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AI application

Additionally, Mastercard is using AI and open banking in the following areas: 

• Data standardization: Mastercard has a reach of 95% of deposit banks in the U.S. and 3,000 banks in Europe, and open banking is not standardized in the U.S., Turner said. However, to benefit from open banking and read data that is clean and categorized, using AI is a must. 

• Fraud and security: Mastercard has used AI for fraud, security and transaction monitoring “for years,” Turner said. Now, it is using those tools with the open banking network. 

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