Mastercard has introduced ‘One Credential,’ aimed at meeting the preferences of Generation Z by integrating multiple payment methods into a single digital credential.
The platform enables users to customise their payment preferences, choosing between debit, credit and installment payments based on the type of purchase. It provides a simple approach to managing financial transactions, catering to the digital-first habits of younger consumers who seek flexibility in their financial tools.
One Credential is part of Mastercard’s broader effort to adapt to changing consumer behaviours, particularly among younger demographics known for their inclination towards digital solutions. The platform responds to Gen Z’s demand for more control over their financial decisions and aims to offer a way to embrace personal finance management in a digital format, potentially helping users manage credit and spending more effectively.
“Today’s consumers expect to be in the driver’s seat,” said Jorn Lambert, chief product officer, Mastercard. “That’s what sparked One Credential. It gives people an innovative way to pay that’s truly personalised to them. While Gen Z may be leading the way, the desire for personalisation spans generations.”
One Credential in use
Several financial companies have adopted Mastercard’s One Credential, including Wio Bank in the UAE, Australia’s Bendigo and Adelaide Bank Group, Episode Six, Galileo Financial Technologies, i2c Inc, Lithic, and Marqeta.
“Being first to market with Mastercard’s One Credential allows us to deliver exactly what our digitally native customers demand – complete payment flexibility and control at their fingertips,” said Prateek Vahie, chief commercial officer at Wio Bank.
While Rahul Shah, chief product & engineering officer of Marqeta, also added: ” By seamlessly integrating One Credential, we can help our embedded finance customers put control and flexibility directly in the hands of consumers, increasing engagement and enabling exceptional financial experiences every day.”
Mastercard also plans to roll out One Credential for small businesses, empowering them with more choice and control over how they pay.
Meeting the needs of Gen Z
According to Mastercard’s research, nearly half of Gen Z consumers prefer using new and innovative methods of payment, and 65 per cent want to manage everything in one place online.
Compared to other generations globally, personalisation is 1.31 times more important to Gen Z consumers when choosing a payment method. In the US, Gen Zers believe they need financial assets totaling more than $9million, almost double that of Gen X’s goal. To meet their goals, 73 percent of teens surveyed say they want more personal finance education and the majority have received advice from social media.
Just half of Gen Z consumers currently use credit, the lowest credit usage among all generations. Accessing credit responsibly helps consumers build a positive credit history, which is crucial for future milestones such as renting an apartment, buying a car, or getting a mortgage.
Nearly 70 per cent Gen Zers are actively trying to increase their credit score, but more than half don’t know where to start. Gen Z needs new digital tools that offer a path to credit worthiness and financial health, while empowering them with choice and control along the way.
