How we're co-creating the future of payments with fintechs

While fintechs faced a slowdown in venture capital funding last year, opportunities for sustainable growth and profitability abound. Fintechs today are continuing to create new and impactful products and services even amidst a backdrop of challenging macroeconomic conditions.

Meanwhile, large incumbents are keeping a pulse on innovation and not just investing in but partnering with fintechs to look around corners and co-create the future of financial services. These companies in turn offer their expertise, networks and tools to help startups thrive well into the future. 

Mastercard's collaboration with fintechs offers a promising vista of opportunities. As the network partner of choice for fintechs, Mastercard serves over 80% of the top digital payment and neobank fintechs on the CNBC global fintech list. We take a collaborative approach to innovation and view fintechs as true partners – not just customers. Our continued collaboration across the ecosystem provides opportunities for revenue growth, regardless of the economic landscape. 

Finding a community of experts 

As the fintech ecosystem grows increasingly complex, the cost of attracting business grows steeper. Fintechs need to be able to turn to experts who can offer insight into how to navigate these unfamiliar waters. Experienced partners possess the network, scope and resources to offer that kind of expertise and tailored programs to support ventures at every stage. 

For example, Mastercard offers Success Planning for Fintechs (SPF), a program designed to provide fintech companies with expert advice to help them navigate critical payment topics and plan for short and long-term success. The purpose of the program is to equip them with a comprehensive go-to-market readiness evaluation, focusing on crucial areas like fraud and risk management, operational efficiency, and managing the cardholder lifecycle. A specialized team collaborates closely with the fintech partners, utilizing Mastercard's deep knowledge and insights to support a seamless and successful product launch. 

Similarly, Mastercard Start Path, the company’s global startup engagement program, provides bespoke programming and mentorship with the company’s product teams and experts, access to Mastercard partners and customers around the world and technology integration opportunities. Mastercard has engaged with more than 380 startups in over 54 countries through Start Path. More than 10 unicorns (i.e. fintechs that have reached $1 billion in valuation) have emerged from the program, including Airwallex, Razorpay and Revolut.

Supercharging the engine of innovation 

Fintechs are not successful in a vacuum. In order for any product or service to work in this space, innovation must fit easily into the larger financial ecosystem. Working out those logistics is complex and can sideline fintechs before ever getting to market. One of the easiest ways to ensure a speedy, seamless integration is with help from experienced, well-connected enabler partners. 

Through a “one-to-many” approach, the Mastercard Engage program connects a network of qualified fintech enablers to any customers – banks, merchants, payment service providers (PSPs), fintechs – to help them expedite the migration to digital, launch new card programs, deploy tap-on-phone technology and beyond. In turn, these partners can boost their own revenue and growth, gain access to exclusive resources and perks as well as opportunities to enhance their brand's visibility. In 2023 alone, Engage partners signed hundreds of commercial deals with Mastercard customers and equipped close to 300 million cards with Mastercard assets in a fast and efficient way. The Engage program supports more than 170 partners including Entrust, FOO, Giesecke+Devrient, Idemia, Thales, Verestro and many more.

Tools for the trade (or payment) 

Given how rapidly the payment industry is evolving, fintechs need more than expertise and networks to grow. They need access to tools that can keep them relevant to their customers. This is something that fellow fintechs can provide.  

Fintech Express, for example, offers a tool to help fintechs get their payment products up and running quickly. They can easily tap into our ecosystem of pre-certified partners from the Engage program, including Banco Dondé, Galileo, i2c, Pomelo and Swap, to select the best payment solution to meet their needs. Fintech Express helps fintechs accelerate from application to launch with transparency at every step, outlining all pending tasks, collecting necessary information and visually tracking progress.

Mastercard’s cutting-edge technology can also help fintechs enhance their products and improve outcomes. Mastercard has been using machine learning to detect fraud and anomalous activity across its network for more than a decade. The company’s Dynamic Yield platform can also help organizations build hyper-personalized experiences across channels.  

By taking a partnership-led approach to innovation with fintechs, Mastercard not only champions collaborative success but also ensures resilience and adaptability in a rapidly changing financial landscape. Through our fintech-focused programs and offerings, we foster a culture of mutual growth and innovation, laying the groundwork for a more interconnected and innovative financial ecosystem in the future.