EXCLUSIVE — Payments technology company Mastercard has partnered with New Jersey-based bank, Cross River, to debut its “Mastercard Cash Pick-Up” service, the bank announced today.
The service allows banks, as well as bank disbursement partners, to quickly give cash to “vetted” customers, without the use of a physical card. Cross River is the first bank to offer this Mastercard service.
The feature allows bank businesses to better deliver rebates or other financial services to customers. After receiving an alert that the cash advance has been processed via mobile, customers can simply head to an enabled ATM and press the “cash pick-up” button to receive the funds. The feature eliminates a traditional plastic debit card from the process — though a customer does still have to head to an ATM to receive their cash.
The typical B2C payment process is “expensive and cumbersome” for bank clients, Ben Isaacson, senior vice president and general manager of payments for Cross River, told Bank Innovation in an emailed statement. Isaac said:
Today we offer payment services based on bank account numbers and debit card numbers. Now, with Cash Pick-Up, we can also offer payment services based on the mobile phone number.
While consumer mobile payments continue to grow, many financial institutions are looking for ways that mobile could be better utilized for business banking, specifically when it comes to KYC, or Know Your Customer initiatives.
We believe that mobile payments are at least as relevant in business payments if not more so … Similar with rebates and other customer payments, the ease in which mobile phone numbers are collected, makes paying to a mobile phone a natural progression. We believe Cash Pick-Up is one of many solutions that will drive mobile payments in the business space.
To learn more about the latest developments in business banking and fintech partnerships, join us on March 5-6, 2018 at the Parc 55 in San Francisco for Bank Innovation 2018. Click here to register.