Mastercard has teamed up with Alloy to introduce an onboarding solution intended to combat fraud. Financial institutions and fintech companies are grappling with a steady rise in fraudulent activities, as highlighted by recent trends indicating an increase in 2024. According to the 2025 State of Fraud Report from Alloy, 60% of organizations reported experiencing higher levels of fraudulent activity last year. In light of this, 93% of respondents stated their intention to boost investments in fraud prevention measures this year, with nearly two-thirds expressing interest in adopting identity risk solutions.
To address these challenges, Mastercard and Alloy have collaborated to develop a new onboarding system tailored for financial services providers. This partnership aims to blend identity verification tools and Open Finance functionalities to streamline the opening of customer accounts while effectively managing fraud-related risks.
Key Features of the New Collaboration
The integrated solution will merge Mastercard’s digital identity verification and Open Finance products into Alloy’s platform. This setup is anticipated to facilitate smoother deployment of risk management controls. Currently, Alloy’s system interfaces with over 200 identity and risk tools; the integration of Mastercard services would broaden this network, enhancing capabilities in fraud detection, compliance checks, and account funding processes.
Mastercard officials highlighted that persistent fraud threats continue to impact both financial institutions and consumers, underscoring the importance of robust risk management practices. They emphasized that their partnership aims to provide a more unified approach to identity assessment across various channels.
Alloy representatives also noted that this collaboration would support a comprehensive method for evaluating customer identities. By integrating these checks comprehensively, they expect financial institutions and fintech companies can reduce manual review efforts, improve onboarding conversion rates, enhance digital experiences, while simultaneously minimizing exposure to fraud.
