Mastercard wants to help Millennials manage their money
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Mastercard wants to help Millennials manage their money

Cashless transaction giant Mastercard wants to help Millennials manage their money. The company has launched a platform for issuers and partners that lets customers check their balances, manage their budget, and set savings goals. Called Assemble, it also lets users make “near real-time” payments to anyone in the U.S. with a debit card that uses Mastercard Send (the company’s “peer-to-peer” money transferring platform).

At first, Assemble’s product offering will be geared towards Millennials, letting them manage their money through a pre-paid account, a mobile app, and a payment card.

Mastercard’s share price has appreciated by 44% so far in 2017

graph mastercard 20171512

SOURCE: Yahoo Finance

For now, Assemble for Millennials is only available in the U.S., but the company plans to launch it in other markets within a year. It might find a significant demand for the services Assemble offers, as research shows that Millennials want digital money management tools.

Up to 60% of young Millennials (aged 18 to the mid-20s) think that the ability to set spending limits is an important feature in a bank, and a sensible way to avoid overspending. Yet, it is a relatively unusual feature in banks, with only two major U.S. banks offering it.

These consumers also want to track their saving and spending habits against others. 52% of Millennials consider this an attractive proposition in a bank, but, again, only one major U.S. bank provides the service. Mastercard’s new platform could help banks meet this demand without having to build their own tools to do it – and that could be a winning proposition for all parties involved.


Disclosure

Dominion holds Mastercard in its Global Trends Ecommerce Fund.


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