Mastercard and Thought Machine, a cloud-based banking technology company, have teamed up to provide financial institutions with banking and payment solutions. This collaboration aims to transform the banking sector by integrating Mastercard’s extensive global network with Thought Machine’s cloud-native banking technology.

Accelerating Adoption of Cloud-Native Banking

According to the press release, Mastercard and Thought Machine are partnering to enable banks to transition from outdated core banking systems to modern, cloud Cloud The cloud or cloud computing helps provides data and applications that can be accessed from nearly any location in the world so long as a stable Internet connection exists. Categorized into three cloud services, cloud computing is segmented into Software as a Service (SaaS), Infrastructure as a Service (IaaS), and Platform as a Service (PaaS). In terms of trading, the versatility of the cloud service allows retail traders the ability to test out new trading strategies, backtest pre-existing conc The cloud or cloud computing helps provides data and applications that can be accessed from nearly any location in the world so long as a stable Internet connection exists. Categorized into three cloud services, cloud computing is segmented into Software as a Service (SaaS), Infrastructure as a Service (IaaS), and Platform as a Service (PaaS). In terms of trading, the versatility of the cloud service allows retail traders the ability to test out new trading strategies, backtest pre-existing conc Read this Term-native platforms. This shift aims to offer more efficient, cost-effective, and seamless banking experiences for customers. By leveraging Thought Machine’s core banking technology, financial institutions can enhance their technology with this new offering.

The partnership focuses on providing banks with the tools needed to deliver personalized and integrated customer services. This includes boosting account opening processes and offering pay-now solutions. It also includes digitizing debit cards, which are typically linked to current accounts.

Paul Taylor, the CEO and Founder of Thought Machine, mentioned: "As we expand our partnership with Mastercard, we plan to leverage their global presence and payment expertise to deliver our core banking and payment platforms to banks worldwide. We are excited to simplify and enhance the modernization experience for complex banks worldwide and make it even easier for them to deliver sophisticated customer experiences."

Mastercard Targets Key Partnerships

Meanwhile, Mastercard targets to eliminate the need for users to manually enter their card numbers during online transactions in Europe, regardless of the platform or device, by 2030. This shift towards tokenization Tokenization Tokenization represents the process of substituting a sensitive data element with a non-sensitive equivalent, i.e. token, which bears no extrinsic or exploitable meaning or value. In essence, the rights to the ownership of an asset are converted into a digital token. Tokenization can be used to own an entire unit of an asset. For example, one token that represents the ownership of a piece of real estate or to split ownership of a single unity of an asset such as 200,000 tokens, each one represen Tokenization represents the process of substituting a sensitive data element with a non-sensitive equivalent, i.e. token, which bears no extrinsic or exploitable meaning or value. In essence, the rights to the ownership of an asset are converted into a digital token. Tokenization can be used to own an entire unit of an asset. For example, one token that represents the ownership of a piece of real estate or to split ownership of a single unity of an asset such as 200,000 tokens, each one represen Read this Term and biometric authentication seeks to enhance security and convenience for users.

According to a recent report by CNBC, the payment giant will phase out manual card number entry in favor of a randomly generated "token" to improve the way users pay for online services. Tokens will replace the familiar 16-digit card number, and this offering will be available for all Mastercard cards issued in Europe.

Elsewhere, Mastercard and Doha Bank recently partnered to improve the operations of the Qatar-based financial institution. This collaboration seeks to enhance Doha Bank's status as a key player in the country's financial sector.