New Mastercard Product Leverages Data to Increase Merchant Approval Rates

Mastercard has launched a new solution that uses the company’s data to make intelligent decisions regarding transactions and boost approval rates for merchants, according to a press release from the card network.

A new program that allows businesses to approve more transactions stands to be popular with merchants across the U.S.

Initial signs suggest that the tool, which Mastercard calls the Payment Optimization Platform (POP), is functioning as the company intended. Early results on the pilot program for POP show that it can increase conversions by 9% to 15%.

Conversion increases hovering around the 10% mark may not sound like a groundbreaking improvement. But for merchants that see hundreds of customers or more come through their doors every day, a 10% lift in conversions can mean the difference between a mediocre year and an excellent one.

Mastercard’s new solution aims to address issues common to many businesses. A report from PYMNTS Intelligence reveals that 60% of merchants say they’ve had an issue with the user experience during online checkouts, and 50% report experiencing difficulties associated with payment processes.

Many merchants may seek to implement strategies of their own to increase conversion rates, but they can face challenges related to how much data they have at their disposal. 

And that’s where the power of the Payment Optimization Platform shines. 

“Mastercard is uniquely positioned through its real-time access to data points from billions of transactions,” the company said in the release covering its new platform. “This allows POP to determine areas of improvement and to spot other potential issues.”

Merchants may have concerns that the Payment Optimization Platform will cause delays in a transaction that will damage the user experience, but Mastercard promises a frictionless experience for consumers.

The company placed messaging on social media indicating that its new program analyzes transaction attributes behind the scenes while processing a user’s payment. 

Mastercard says its models are constantly learning, and the company plans to integrate AI capabilities into POP shortly after its pilot program concludes.

The card network is partnering with other payments-focused companies, including Adyen and Worldpay, to roll out its new platform.

After its pilot program concludes, Mastercard will integrate AI capabilities into the platform.

The company said in its release that it’s planning a more extensive launch of POP, which will include additional partners, before the end of the year.

The Payments Optimization Platform may not be available to every merchant that wants to take advantage of it before this year’s holiday shopping season kicks into full gear. But by testing the platform before releasing it to the world, Mastercard can ensure that it’s working as the company expects it to.

For now, the company is excited to keep forging ahead with its pilot program, Sumeet Bhatt, SVP, Payment Optimization at Mastercard, said in the company’s press release.

“The Payment Optimization Platform is a game-changer — it provides our acceptance community partners with tools and intelligence to deliver the best payment experience and drive higher conversions,” Bhatt said.