Addressing Subscription Overload 

The growth of subscription-based services has led to an overwhelming number of subscriptions for customers to manage. Consequently, customers frequently encounter difficulties tracking recurring payments, unintentionally paying for services that they intended to cancel, but forgetting to do so. This issue has become a significant pain point, especially as more consumers adopt various subscription services for everything from streaming media to fitness memberships. 

Meeting the Demand for Subscription Management Tools 
 
One brand addressing this issue is Mastercard, who implemented a service designed to help consumers better manage their subscriptions through their bank’s existing applications. Their new solution, called Smart Subscriptions, is powered by open banking technology from Mastercard’s Finicity, which consolidates subscription management, spend analysis, and personalized offers into one seamless user experience. This offering reflects a growing demand for tools to help manage recurring payments, with 73% of respondents in a Mastercard survey expressing interest in such a solution, and 60% trusting their banks to provide it (Mastercard, 2024).  

Smart Subscriptions integrates various accounts into one single hub. The solution is designed to be network- and payment-agnostic, enabling any financial institution to adopt the service through a single API. In turn, Mastercard provides users with a clear overview of their subscriptions, including detailed payment histories, upcoming bills, and the ability to manage their subscriptions directly from their banking apps. This approach not only aims to enhance consumers’ financial wellness, but also to foster greater loyalty and engagement between banks and their customers, potentially reducing chargebacks and associated costs. 

While the Smart Subscriptions solution is specific to Mastercard, they are not the only company addressing this market need. VISA has also invested in similar technology, allowing their bank customers to manage their subscriptions directly from their banking applications.  This showcases a broader trend in the financial services industry to adapt to the heavy increase subscription-based monetization in the market and to support its customers.   

The Broader Trend in Financial Services 

Although subscription management is a well-established practice, the major players in the card industry, such as Mastercard and VISA, are making strides to adopt this approach, signaling a pivotal transformation. These brands are transitioning from their traditional roles as issuers to acting as trusted advisors for their customers. This development reflects an effort to bridge the gap between banks, card companies, and their consumers, underscoring a commitment to fostering deeper, more advisory-based relationships. 

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