At Nordic Fintech Magazine, we believe that the best outcomes happen when two strong entities come together with a shared purpose. As the saying goes, “Partnerships multiply power, not just add it.” This perfectly describes the synergy that occurs when organizations with complementary strengths and goals collaborate. So, when Mastercard and Nexi Group, two titans in the financial world, joined forces, we were excited to see what would be the impact on merchants and consumers alike.
We were eager to understand how these industry leaders decided to combine their capabilities and market influence to boost their reach and innovation in account-to- account payments across Europe. Mastercard, a global leader in payment technology, and Nexi Group, a leading pan-European payment service provider which is represented as Nets in the Nordics, are forces with enormous gravitas in their fields. Together, their potential to reshape the account-to- account payments landscape in the Nordics is significant.
We spoke with Ian White, who leads Mastercard’s go-to-market strategy for open banking in Europe, and Nabeel Moosa, who heads up strategy for Nexi’s e-commerce business unit. Our conversation about the partnership’s early successes and its benefits, also centered around celebrating how these two financial powerhouses are amplifying the industry’s value through their collaboration.
What was the foundation of the partnership between Mastercard and Nexi Group?
Nabeel: Open banking is a rapidly growing area. As a payment service provider, we are always looking for new payment methods that align with changing consumer habits. Mastercard stood out for its high-quality products and collaborative approach. We decided to work together to implement open banking solutions for our merchants across Europe.
Ian: Account-to-account payments are becoming significant, making up about 20% of all e-commerce volumes in Europe. Open banking, a subset of A2A, has faced challenges in the past, but we’ve seen a significant shift in the last 12 to 18 months. This partnership with Nexi is about leveraging those changes and oTering new, compelling use cases that benefit merchants and consumers alike.
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How does this partnership create synergies between Mastercard and Nexi Group?
Nabeel: Our industry is complex, and partnerships help simplify the ecosystem. For years, we’ve collaborated with Mastercard, particularly through our brand Paytrail in Finland, where A2A payments are dominant. Together, we’ve been working to provide a cutting-edge solution that enhances the existing payment infrastructure.
Ian: The combination of Mastercard’s experience in running large-scale payment networks and Nexi’s deep knowledge of A2A payments creates a powerful synergy. We bring together the best of both worlds to drive innovation and improve the payment experience.
What practical benefits have merchants experienced through this partnership?
Nabeel: In markets where A2A payments are already common, we focus on reliability, trust, and user experience. For new markets, our collaboration ensures that merchants can oTer a seamless, secure, and trustworthy payment option to consumers, ultimately improving conversion rates.
Ian: Security and trust are paramount. By integrating Mastercard’s secure channels and advanced authentication methods, we’ve been able to enhance the overall payment experience, making it not just secure but also convenient for consumers.
How does the partnership with Nexi align with Mastercard’s broader strategy?
Ian: Account-to-account payments are core to Mastercard’s multi-rail strategy, which means we are more than just a card company. We’ve made several acquisitions, including Vocalink and Nets Business Services, to strengthen our presence in this space. Open banking is a natural extension of our capabilities, allowing us to oTer data and payment services that are infrastructure-agnostic, enhancing our value proposition for partners like Nexi.
How do diferent markets in Europe adopt A2A payments, and what’s next in terms of innovation?
Nabeel: Payment needs vary across markets. In Europe, we’re moving towards instant payments, which will only grow with the implementation of new regulations like PSD3. Open banking is paving the way for more consumer-oriented payment solutions, which could significantly change the dynamics of cost and conversion for merchants.
Ian: The Nordics, for example, are ahead in digital payments. However, the key to success in any market is adapting to local preferences while ensuring trust and security. As regulations evolve, so will the opportunities for innovation in payments, particularly in how open banking can be integrated into everyday transactions.
How does Mastercard’s technological innovation contribute to this partnership, particularly in enhancing user experience?
Ian: We’re focused on bringing secure, innovative solutions to the table. For example, using app-to-app redirection and biometric authentication, we’ve streamlined the payment process. Consumers can now make payments with just one click, without
manually entering information. We’ve also integrated features like account balance displays, improving both security and user experience.
Nabeel: From a merchant perspective, it’s crucial to oTer payment methods that are not only secure but also easy to use. By working closely with Mastercard, we ensure that our merchants benefit from cutting-edge solutions that increase conversion rates, reduce friction, and ultimately improve the overall payment journey.
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What have been the early successes of this partnership?
Nabeel: Paytrail in Finland is a great example. In a market where A2A payments are already well-established, we’ve seen significant growth, not just maintaining but increasing our share of A2A payments. We’re also making strides in enabling high-value digital payments, which were previously challenging due to bank-imposed limits.
Ian: The scale and experience that Nexi brings, combined with Mastercard’s ability to run secure, large-scale payment networks, have led to promising results. We’re already seeing the impact in markets like Finland and are excited about the potential in other regions.
What are you most excited about for the future of this partnership?
Nabeel: As we gather more insights from merchants and consumers, we’ll refine our oTerings and explore new use cases for open banking. The ongoing evolution of regulations like PSD3 will also open new opportunities for growth.
Ian: Regulation is a catalyst for innovation. We’re looking forward to leveraging PSD3 and other regulatory changes to expand our oTerings. The future is about combining data and payments in ways that add real value to consumers and merchants.
