This case study examines how the financial giant is innovating new payment paradigms for both its B2B and B2C members
According to one payment card services firm’s research, consumers today — particularly digital-native Gen Z — expect seamless, flexible, and personalized payment options. Traditional financial systems often require juggling multiple payment methods, leading to inefficiencies for both consumers and businesses.
For many individuals, managing multiple debit, credit, and installment options can be cumbersome, while businesses face challenges in offering seamless digital payment solutions. That is why Mastercard is addressing these complexities through an approach that integrates multiple payment options into a single, digitally connected solution.
In this case study, we can see how the firm’s 20 February 2025 introduction of a streamlined payment framework called One Credential can tap innovation to empower both consumers and businesses with enhanced customer engagement. By leveraging AI, data analytics, and digital banking infrastructure, the payment services giant is enabling users at all levels of the business chain to consolidate their financial tools into a unified digital credential, providing choice and control in how payments are made.
Addressing the credit gap for younger consumers
Take, for instance, a young professional managing household expenses who may prefer to pay for daily purchases using a debit account while reserving credit for larger transactions and using installment plans for significant investments. This level of financial customization enhances both convenience and responsible financial planning.
In fact, according to the firm’s market research, one of the biggest financial challenges faced by Gen Z consumers polled is limited access to structured credit. Many young adults are financially cautious but find themselves unable to build credit history due to the lack of traditional borrowing options.
Mastercard’s approach enables users to select funding sources dynamically, allowing them to incorporate credit-building opportunities into their everyday transactions. Structured credit solutions, such as instalment plans linked to a single digital credential, provide a stepping stone towards improved financial health and creditworthiness.
According to the firm’s Chief Product Officer, Jorn Lambert: “Today’s consumers expect to be in the driver’s seat. That’s what sparked One Credential. It gives people an innovative way to pay that’s truly personalized to them. While Gen Z may be leading the way, the desire for personalization spans generations.”
Empowering payment solutions personalization
At the level of financial institutions and fintech providers, users of One Credential are increasingly looking for ways to offer more personalized and flexible payment solutions to their customers. In this regard, Mastercard’s technology empowers banks, digital wallets, and fintech firms to integrate multiple payment methods into a single digital credential, improving customer engagement and satisfaction.
Key partners, including digital banks, financial technology providers, and payment processing firms, are working alongside Mastercard to implement this innovative solution. By streamlining payment infrastructure, businesses can attract younger consumers who prioritize convenience and customization in their financial transactions.
Future-proofing digital payments
For issuing banks, the One Credential paradigm provides a differentiated offering that is especially appealing to younger consumers seeking digital, personalized payment experiences and are planning their financial futures.
Mastercard’s commitment to financial innovation extends beyond consumer payments. The firm is also exploring ways to implement similar technology for small businesses, allowing them to optimize cash flow, manage expenses, and access credit more efficiently. The plan is to roll out the scheme for small businesses, empowering them with more choice and control over how they pay.
One Credential is designed so that consumers and small businesses using it can access even more funding options and set payment preferences around transaction type and time – all with a single, digitally connected credential.
As digital finance continues to evolve, Mastercard’s integrated approach serves as a model for how technology can be leveraged to create a more inclusive, flexible, and seamless payment ecosystem.
Through strategic partnerships and innovative financial tools, Mastercard is not only simplifying payments but also fostering greater financial inclusion and long-term economic resilience.
Said Derek White, CEO, Galileo Financial Technologies, a partner of the One Credential solution: “This cutting-edge innovation allows us to offer unrivalled simplicity and flexibility to our customers, addressing their ever-evolving payment needs… In turn we are supporting our customers in setting new standards of convenience, optionality and security in every transaction.”
