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Mastercard's new tool enables people to cancel subscriptions straight from their banking app

From streaming services to meal delivery, Mastercard is introducing a new feature aimed at giving consumers full and frictionless control over their subscriptions. The initiative comes as the subscription economy continues to boom, projected to reach USD 1.5 trillion by 2025.

The new solution enables people to monitor and terminate subscriptions directly through their banking apps instead of having to deal with a subscription provider's cancellation process. As Ajay Bhalla, president of Cyber & Intelligence at Mastercard, explains: "Now more than ever, people want greater visibility over their monthly spending. This solution gives consumers direct control over their subscription payments through a single trusted source. This puts power back where it belongs — with the consumer."

Offered as a white-label service, Mastercard's subscription management tool is currently available to banks in North America and Europe. It was developed by Danish fintech Subaio, which joined Mastercard's accelerator program for later-stage startups in 2020.

Trend Bite

Subscriptions are designed to be incredibly easy (and tempting) to sign up for, whether to catch that new show everyone's watching or get a great deal on razor blades. But those recurring payments add up. Still feeling the squeeze of inflation, consumers worldwide are reevaluating their buying habits and trying to cut their spending.

By placing subscription control directly within a person's regular banking environment, Mastercard's new tool removes all hurdles between seeing a monthly payment deducted and then acting on that information by canceling a subscription. Which tweaks can your brand make to help individuals regain control over their finances?