Mastercard has reached an agreement to acquire Minna Technologies, a software firm that specializes in helping consumers manage their subscriptions more effectively. This acquisition is part of Mastercard’s efforts to expand beyond traditional credit and debit card services into technology solutions such as cybersecurity and fraud prevention. The financial details of the transaction have not been disclosed as it is currently undergoing regulatory review. By integrating Minna Technologies’ subscription management technology into its services, Mastercard aims to provide consumers with a consolidated view of all their subscriptions, regardless of the payment method used.
Minna Technologies, based in Gothenburg, Sweden, offers a platform that enables consumers to manage their subscriptions within their banking apps and websites. The company works with some of the world’s largest financial institutions and is already a key partner for both Mastercard and Visa. Managing multiple subscriptions from various services like Netflix, Amazon, and Disney Plus can be challenging for consumers, leading to difficulties in canceling unwanted subscriptions. This not only affects consumers but also impacts merchants as customers may resort to requesting payment blocks from their banks.
The global subscription economy is steadily growing, with Juniper Research forecasting an increase from 6.8 billion subscriptions currently to 9.3 billion by 2028. To keep up with fintech competitors who are offering more digital-native solutions, traditional financial incumbents like Mastercard are expanding their product offerings. In addition to the Minna Technologies acquisition, Mastercard acquired Finicity in 2020, allowing third parties to access consumers’ banking information for payment purposes. The company also announced plans to tokenize all cards issued on its European network by 2030, streamlining the payment process for consumers.
Visa, a primary competitor of Mastercard, is also focusing on enhancing its services to compete with fintech challengers. The launch of Visa A2A, a new service that simplifies the setup and management of direct debits, demonstrates Visa’s commitment to evolving payment solutions. By enabling direct debits to be initiated directly from a bank account, Visa aims to provide consumers with a seamless payment experience. Both Mastercard and Visa are aligning their strategies to cater to changing consumer preferences and technological advancements in the financial services industry.
The consolidation of subscription management technology into banking apps and websites is expected to improve the overall consumer experience and reduce friction in managing subscriptions. By offering consumers a centralized hub to monitor and cancel subscriptions, financial institutions like Mastercard aim to enhance customer loyalty and satisfaction. This move also benefits merchants by minimizing the disruptions caused by recurring subscription cancellations. By leveraging innovative technology solutions, traditional payment networks like Mastercard and Visa are ensuring their relevance in an increasingly digital and competitive landscape.
Overall, Mastercard’s acquisition of Minna Technologies underscores its commitment to innovation and diversification beyond traditional payment services. By incorporating subscription management technology into its offerings, Mastercard aims to streamline the subscription management process for consumers and reduce friction in payment transactions. This strategic move aligns with the company’s broader goal of providing convenient and secure financial solutions to meet the evolving needs of consumers in the digital age. As the fintech landscape continues to evolve, traditional financial institutions like Mastercard and Visa are adapting their strategies to remain competitive and deliver value to customers.
