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EXECUTIVE INSIGHT SERIES March 2020 FINTECH ACCELERATOR Mastercard And VamosPay: Accelerating The Path Toward Financial Inclusion Page 10 Mastercard And TabaPay: Accelerating Instant Payments Page 16 Mastercard And MoneyLion: Bringing ‘Instant’ Improvements To Financial Health Page 22
TABLE 04 Introduction
OF
Accelerating Growth Between FinTechs
And FIs To Foster Ecosystem Collaboration
Take a look at what is included in the FinTech Accelerator edition of the Executive Insight series,
CONTENTS
including interviews with executives from MoneyLion, TabaPay and VamosPay about how their
partnerships with Mastercard and access to its Accelerate program have improved
their operations.
10 Mastercard And VamosPay
Accelerating The Path Toward Financial Inclusion
Jess Turner and Douglas McGann, co-founder and president of VamosPay, explained in
a Masterclass with PYMNTS’ Karen Webster how the Mastercard Accelerate program collabora-
tion is bringing financial services to a traditionally underserved market across numerous
new use cases.
16 Mastercard And TabaPay
Accelerating Instant Payments
Mastercard’s drive to scale instant digital payments has led it to new ways of giving technology-
nimble startups the tools and access to quickly scale and contribute to its mission. Sherri
Haymond, Manoj Verma, TabaPay’s co-founder and chief revenue officer, and Rodney Robinson,
Sherri Haymond Jess Turner
the latter’s co-founder and president, told PYMNTS in a recent interview that linking through
executive vice president executive vice president
of digital partnerships of products and innovation,
Mastercard’s Accelerate program has led to tangible benefits, including cross-pollination of
at Mastercard North America at Mastercard insights that address gig payments.
Haymond is responsible for business Turner leads strategy, design, develop-
development and partnerships global- ment and commercialization of digital
ly with North America-headquartered and card products, and is responsible 22 Mastercard And MoneyLion
digital merchants, FinTechs and retail for Mastercard’s inclusive North Amer-
innovators. ican growth strategy that leverages its
Bringing ‘Instant’ Improvements To Financial Health
technology and expertise to address Speed matters in improving millions of Americans’ financial lives, especially for FinTechs seeking
digital economy challenges. to bring digital products to market and target consumers underserved by traditional banking
models. Haymond and Dee Choubey, CEO of digital bank MoneyLion, recently explained how
the card network and FinTech’s collaboration will foster new card program launches in 2020
and beyond.
Introduction Mastercard Executive Insight
MASTERCARD ON
ACCELERATING GROWTH
BETWEEN FINTECHS AND FIs
TO FOSTER
ECOSYSTEM
COLLABORATION
T
he payments and financial services sectors are taking advantage of
EXECUTIVE
the multiplier effect, through which one plus one can equal four.
More established financial players offer scale and reach along with
decades of experience in touching millions, even billions, of end
INSIGHT SERIES
users’ financial lives. This provides FinTechs — which have established technology
and development processes to streamline money and information’s movement —
with greater access.
© 2020 PYMNTS.com All Rights Reserved 4 © 2020 PYMNTS.com All Rights Reserved 5
Introduction Mastercard Executive Insight
Technology-nimble startups’ payment giant’s network evolutions “MoneyLion [has been] playing a part other technologies (see p. 22 to read
collaborations with traditional can be traced from its original in facilitating ‘instant everything,’” more about the interview).
financial institutions (FIs) are focus on banks and card products. Choubey said.
bringing new services and products Fast forward a few decades, she Pairing for success
to market to solve complex explained, and that network has This includes all the places in which Other partnerships, like Mastercard’s
problems, and companies, banks evolved to include merchants and consumers want on-demand access pairing with financial services
and customers are benefiting from digital partners offering solutions to their money, as well as how provider TabaPay, have focused
their efforts. In a series of interviews from real-time push payments to waiting two to seven days for checks on instant deposits, which are in
with PYMNTS’ Karen Webster, cybersecurity services. to clear and payments to settle can growing demand in the burgeoning gig
FinTech and Mastercard executives lead to financial stress. economy. In their interview, Haymond;
pointed to development programs Dee Choubey, CEO of financial Manoj Verna, TabaPay’s chief revenue
like Mastercard Accelerate as services provider MoneyLion, shared “Mission and vision alignment,”
officer; and Rodney Robinson, its
instrumental in addressing problems an example of how this expanded especially on social responsibility,
president, discussed how non-
across demographics network and collaboration can help helps Mastercard and MoneyLion fill
bank companies can gain access to
and geographies. entities scale into new opportunities financial inclusion gaps, Haymond
banking services and enable fund
and markets — and why his company noted. This is accomplished in
flows across Mastercard cards
In one interview, Sherri Haymond, is targeting card program launches in part by offering the FinTech and
(see p. 16 to read more about
Mastercard’s executive vice president 2020 and beyond. others like it access to application
the interview).
of digital partnerships, noted that the programming interfaces (APIs) and
© 2020 PYMNTS.com All Rights Reserved 6 © 2020 PYMNTS.com All Rights Reserved 7
Introduction Mastercard Executive Insight
Partnerships and ecosystems services that are available to them,” offer what is akin to a single access services and products to market that
said Douglas McGann, co-founder point to build on the card network’s can have a real impact on consumers
The partnership model also allows
and president of VamosPay. technology and data (see p. 10 to everywhere.
for cross-pollination between
read more about the interview).
Mastercard’s network and the
He explained how the FinTech is The value in joint efforts between
FinTechs with which it works.
using the partnership to boost Working toward a common larger entities and FinTechs lies
This includes prepaid card offering
financial inclusion among the goal in “solving real-world problems,”
VamosPay, which is building new use
Latino community. Jess Turner, Startups are forming diverse Haymond told Webster.
cases to serve the Latino community
executive vice president of product collaborations with traditional FIs
through prepaid cards and
and innovation, North America, at This edition of the Executive Insight
other solutions. and providers in their quests to
Mastercard, separately illustrated series showcases how alignment
improve their competitiveness. The
how programs within Accelerate between firms can lead to seismic
“We still see a number of folks in the financial services space is becoming
— including Mastercard FinTech changes in commerce, payments
community who are just lacking in saturated with players of all sizes,
Express and Mastercard Engage — and the ways consumers live their
general awareness of some of the but FinTechs and big-name players
financial lives.
alike share a common goal: bringing
© 2020 PYMNTS.com All Rights Reserved 8 © 2020 PYMNTS.com All Rights Reserved 9
Mastercard Executive Insight
Mastercard
And VamosPay: CLICK HERE
to watch the video
Accelerating
The Path Toward
Financial Inclusion
T
he best partnerships see members contributing strengths and
expertise to create a whole that is greater than the sum of its parts.
The partnership model can bring such outsized firepower to digital
innovation through cross-pollination — especially when the pairings
are between large card networks and FinTechs.
© 2020 PYMNTS.com All Rights Reserved 10 © 2020 PYMNTS.com All Rights Reserved 11
Mastercard and VamosPay Mastercard Executive Insight
These networks have scale, Reaching the underserved
connections to broad ecosystems of
VamosPay is a prepaid card offering
partners and customers and access
that is part of an alternative solution
to numerous specialized programs
that can help FinTechs navigate
targeting the Hispanic and Latino
consumer segment, McGann said. Its
It’s about improving what can otherwise be
today’s customers’ complex and
changing needs. FinTechs, for their
goal is to provide a comprehensive a challenging set of circumstances if you are
suite of financial solutions that
part, have their eyes on tapping new
leverage Mastercard’s network, still standing in check-cashing lines and
markets and providing enhanced
technology and infrastructure to go
consumer experiences. This also
beyond basic payment mechanisms.
living in a ‘cash world.’ It’s an
benefits card networks, giving them
digital methods to reach new and
The partnership is expected to tap
offerings such as Mastercard Send for
expensive and limiting place to be.
existing customer segments and
cross-border payments, rePower for
keep up with their changing payment
single connections to multiple cash
needs and expectations.
reload networks and Digital First,
To that end, Mastercard’s Jess Turner
and Douglas McGann, co-founder
and president of VamosPay, recently
noted in a PYMNTS Masterclass with which delivers card products in a the country. It’s about improving what
Karen Webster that their Accelerate digital form factor. can otherwise be a challenging set of
program collaboration is bringing circumstances if you are still standing
financial services to traditionally “We still see a number of folks in [the in check-cashing lines and living in
underserved markets. That effort Latino] community who are lacking a ‘cash world.’ It’s an expensive and
spans new use cases, the executives general awareness of some of the limiting place to be.”
said, while enabling them to tap the services that are available to them,”
Accelerate program’s operational McGann said. “[These are largely] Turner said financial inclusion is
efficiency to bring solutions to market immigrants and … folks who are living a significant part of Mastercard’s
faster and at scale. in and among communities across focus, and nodded to technology’s
© 2020 PYMNTS.com All Rights Reserved 12 © 2020 PYMNTS.com All Rights Reserved 13
Mastercard and VamosPay Mastercard Executive Insight
and data’s transformative abilities Partnering with Mastercard through Turner added that linkups with community,” he said. “These all
to deliver new services to a wide Accelerate offers FinTechs a “single FinTechs like VamosPay help the represent extensions to what
range of users. The card network doorway” they can use to onboard, payment network grow its business, we are doing.”
launched its Accelerate program then access and integrate the card but it also seeks firms that align with
to help achieve this goal, working network’s tools and technology. The it on social responsibility. Mastercard These efforts will have long-term
with FinTech providers to create solutions span Mastercard programs has been enhancing its offerings impacts on both companies, as well.
the solutions necessary to reach such as FinTech Express, Developers to serve Latino consumers’ needs
underserved communities. and Engage, with the network using through the partnership, she “We prioritize our partnerships based
the latter to showcase its partners, told Webster. on where we can do more together —
Mastercard Accelerate Turner explained. where one plus one equals four, not
“This is incredibly helpful to us, just two,” Turner said.
Mastercard debuted its Accelerate
program in October 2019 to The firms’ relationship began in late because we are a [business-to-
streamline how it works with 2018, McGann noted. It was created business] company working with
FinTechs as they scale their through a mutual drive to behave in a partners … to have a bigger impact in
operations. Financial inclusion socially conscious way and contribute the segment,” Turner explained.
remains a joint responsibility across to the Latino community by offering a
comprehensive set of financial tools. Such pairings bode well for future
stakeholders — including Mastercard,
developments and impacts,
the private sector, the government
“What we found was that Mastercard McGann added.
and advocacy groups — Turner said.
was ‘finishing our sentences’ —
She and McGann agreed that the
perhaps with the exception of one or “In a year’s time, we will be
path and interactions toward this end
two words, but the meaning was the developing the tools that help
can be simplified using a platform-
same,” McGann said. “It did not take with the family orientation of the
and-partnership model to have the
us long to feel we were with the Latino/Hispanic community, as well
greatest market impact.
right partner.” as drive the business ownership
and entrepreneurial side of that
© 2020 PYMNTS.com All Rights Reserved 14 © 2020 PYMNTS.com All Rights Reserved 15
Mastercard Executive Insight
Mastercard
And TabaPay: CLICK HERE
to watch the video
Accelerating
Instant Payments
T
he card network’s drive to scale digital payments allows it to give
technology-nimble startups the tools and access they need through
its Accelerate program. Mastercard’s Sherri Haymond; Manoj Verma,
FinTech provider TabaPay’s co-founder and chief revenue officer;
and Rodney Robinson, its co-founder and president, recently told Karen Webster
in an interview that linking through Accelerate has led to tangible benefits for
both firms. This includes cross-pollination of insights that address gig payments,
among other use cases.
© 2020 PYMNTS.com All Rights Reserved 16 © 2020 PYMNTS.com All Rights Reserved 17
Mastercard and TabaPay Mastercard Executive Insight
Haymond drilled into the mechanics Speedy payouts are especially “We fill that need [to handle
of Mastercard’s partnerships, important to gig economy workers, payments] in an underserved market
including that the company has she said, as such employees often with cards,” Robinson continued.
cultivated relationships with FIs over live paycheck to paycheck and do “[That is true] whether it’s FinTechs
FinTechs, money its decades in operation. It has since not have the flexibility to wait for or brand-new companies looking
businesses and built a suite of products and services
companies want to access, but not
their earnings. The companies are
targeting other use cases, as well.
for banking or lending, where 95
percent of loans are on the ACH
lenders all have always in the same way. TabaPay’s niche is as a Mastercard rails, or whether it’s service-oriented
Send reseller, enabling push and businesses that use ACH and cash.”
a couple of Firms do not need to have banking pull payments for customers. The
licenses in place to tap into company says it sees an annual $1.8 TabaPay launched 2017 and sits in the
common threads. Mastercard’s offerings, for example. billion in volume through Mastercard. middle of the ecosystem between
The card network works with TabaPay banks and merchants, he explained. It
They all typically as it seeks to provide account “FinTechs, money businesses and is now adding to its banking partners
operate outside the funding with speed and visibility in a
world in which instant deposits and
lenders all have a couple of common
threads,” Robinson said. “They all
to get companies banked and help
them receive and disburse money.
banking system. instant credit are in demand. typically operate outside the banking
system. They aren’t banks, but they Webster asked when TabaPay realized
They aren’t banks, “We have been taking a hard look need banking services.” it needed to more fully engage
at those offerings and figuring out Mastercard into its solution, and
but they need ways to make it much easier for All these companies have to accept Robinson was ready with an answer.
banking services. companies like TabaPay to connect
to our products and services,”
payments and disburse funds,
however — which means they all “We started the company on April 3,
Hammond said. “[This includes how have to use the banking system. 2017, and we went to Mastercard on
they] use our rails to disburse money April 4,” he said.
to people who really need it, and who
need access to these funds in a fast
and secure manner.”
© 2020 PYMNTS.com All Rights Reserved 18 © 2020 PYMNTS.com All Rights Reserved 19Mastercard and TabaPay Mastercard Executive Insight
Cultivating relationships and critical thinking to enable
important new use cases,” Haymond
Haymond said TabaPay had been
said. “That has come to fruition as the
looking to access services that
Accelerate program.”
Mastercard traditionally made
available to banks, making the
Mastercard
Mastercard also has the ability to step
Accelerate program a good fit.
in and co-develop FinTechs’ strategies
takes its cues
“There were ways, and obviously
as they go to market, she added.
TabaPay has found value in having
on where to
constructs, for non-banks to access
these services, but it was not
access to Mastercard when technical look through
questions arise, Robinson said. Its
streamlined,” she told Webster.
future milestones’ success can feedback from
and likely will be measured beyond
Mastercard took time to reexamine
its rules and technical framework and metrics like increased payment
[its] partners.
make it easier for FinTechs to onboard processing activities and improved
revenues through better engagement
As real-life needs
to its services, APIs and developers,
Haymond explained. Its Engage with merchants, Verma noted. come up, we can
product serves as a connection
platform within Accelerate that brings
The card network believes value lies address them.
in its ability to help users with their
FinTechs together with other members
everyday processes.
of Mastercard’s ecosystem. The
company continues to tailor Engage
“[It’s about] solving real-world
to meet both its bank and non-bank
problems,” Haymond said. “Mastercard
customers’ needs.
takes its cues on where to look
through feedback from [its] partners.
“These are all incremental steps we’ve
As real-life needs come up, we can
taken that have culminated in the
address them.”
formalization of all of this rethinking
© 2020 PYMNTS.com All Rights Reserved 20 © 2020 PYMNTS.com All Rights Reserved 21Mastercard Executive Insight
Mastercard
And MoneyLion: CLICK HERE
to watch the video
Bringing ‘Instant’
Improvements To
Financial Health
S
peed matters when working to improve millions of Americans’
financial lives — especially for the FinTechs seeking to bring new
products to market and target consumers underserved by traditional
banking models.
Mastercard’s Sherri Haymond and Dee Choubey, founder and CEO of digital
banking membership MoneyLion, recently told Karen Webster about how their
companies’ collaboration will foster card program launches in 2020 and beyond.
© 2020 PYMNTS.com All Rights Reserved 22 © 2020 PYMNTS.com All Rights Reserved 23Mastercard and MoneyLion Mastercard Executive Insight
The New York-based digital banking Looking under the financial “It rarely happens, and we saw the
FinTech launched to provide financial system hood opportunity to create the digital bank
access to 90 million Americans, of the future.”
Choubey’s previous experience at
Choubey explained. It offers fee-free
It was a checking accounts, cash advances,
large FIs provided him a front-row
seat to the 2008 financial crisis and
This revelation confirmed that
consumers wanted faster, more
once-in-a-lifetime fully managed investment accounts
and guidance for consumers looking
Great Recession. The emergence of
convenient access to their money.
the United States government as a
opportunity, to build their credit profiles.
major shareholder via capital infusion
MoneyLion’s partnership with
Mastercard seeks to revamp and
and bailout packages created a
where the hood All these services are boosted by
dampening effect on innovation. He
speed up payments, he told Webster.
faster transaction speeds, but smaller
of the American firms often lack the budgets and
saw a trickle-down effect, with the
average American who relied on the
“When you are waiting two days
connections to give their solutions a or seven days for your money,
financial services push into ubiquity. Larger networks
financial services system left behind.
car was open. It have scale as well as connections
to broad ecosystems of partners
The same social innovation that was
happening in Silicon Valley — with
rarely happens, and customers, however, making
people learning to lead lives online
collaborations necessary for any
and we saw startups that want to see growth.
with Facebook or LinkedIn — just
was not translating to how Americans
Such pairings also help companies
the opportunity to weather any economic downswings
transacted or how many credit or
investment services were available.
create the digital that might otherwise cause them to
shutter their operations.
The 2012 and 2013 years offered
deeper insights, however.
bank of the future.
“It was a once-in-a-lifetime
opportunity, where the hood of
the American financial services
car was open,” Choubey said.
© 2020 PYMNTS.com All Rights Reserved 24 © 2020 PYMNTS.com All Rights Reserved 25Mastercard and MoneyLion Mastercard Executive Insight
[financial stress accrues,]” he said. development process, Choubey said. small businesses whose needs
“[MoneyLion] is playing a part in The pair first connected in 2013, are not being met by existing
facilitating ‘instant everything.’” and the payments giant saw an options. The MoneyLion-Mastercard
opportunity to build and distribute relationship’s particular appeal has
Mastercard’s initial network took new services and products to come through access to developers We are trying to
shape with banks as the focus, but
has evolved to include merchants,
further its goal of improving
financial inclusion.
and APIs building on FinTechs’
existing strengths in engineering,
solve problems
digital partners and FinTechs,
Haymond noted. MoneyLion began “A year-and-a-half ago, when we re-
development and agile processes.
and deliver on the
having conversations with the card engaged, it seemed like a natural fit,” Choubey said the partnership’s long- financial needs of
network as it deployed tools and Haymond explained. term success and progress can
features geared toward financial be measured from its customers’ 7.5 billion people
access early in its infrastructure She noted that the relationship was perspectives, largely through
cemented through Mastercard’s reductions in financial stress. Basic
around the world.
Accelerate program and is now
gearing up for card and program
metrics might include the time
customers spend with various
We can do
launches. It has helped the card MoneyLion offerings through primary that through
network further define its roadmap deposit or brokerage accounts,
toward enabling greater financial measurable improvement in churn [partnerships]
access for Americans. rates and an increase in credit scores,
in addition to a boost in transaction
like [that with]
“There’s been a lot of back and forth,
and it all starts with the mission
volumes.
MoneyLion.
and vision alignment,” “We are trying to solve problems
Haymond explained. and deliver on the financial needs of
7.5 billion people around the world,”
This dovetails with the Accelerate Haymond told Webster. “We can do
program’s goal of filling financial that through [partnerships] like [that
services gaps for individuals and with] MoneyLion.”
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