Consent management: A priority in sandbox payment innovation

Mastercard’s new account-to-account (A2A) instant payments sandbox will help financial institutions explore new technologies by testing novel payments solutions in a secure environment.  

But when testing new ways to make payments easier, innovators should remember the importance of data protection and privacy. 

Jump to:

• Why sandboxes enable innovation
• The importance of data protection and privacy
• Better payments processes, more consumer trust

Why sandboxes enable innovation

Mastercard’s sandbox supports the UK government’s National Payments Vision, a set of policies aimed at improving trust in payment services to bolster economic growth.  

The sandbox will allow financial institutions to experiment with new methods of payment processing and fraud detection in a secure environment certified under ISO 20022, a standard for electronic data interchange between financial institutions. 

The Mastercard scheme focuses on A2A payments, which are direct transfers of money between two accounts without intermediaries, such as credit card providers. A2A payments typically use real-time networks, allowing transfers to occur within seconds, whether between individuals (P2P), businesses (B2B), or from consumers to merchants (C2B). 

Banks and Fintechs can trial advanced functionalities such as a “5-leg credit transfer” with real-time confirmation of funds. This allows merchants to check payments immediately, which should enhance customer experience and convenience. 

Peter Reynolds, Executive Vice President, Mastercard Real Time Payments said,  

“Account-to-account payments in the UK are already an enormous part of the UK’s financial landscape. The Mastercard A2A instant payments Sandbox opens our innovative technology to our partners to develop and test new potential services. Alongside the UK government’s National Payments Vision, we’re setting out a bold vision of the future in A2A real-time payments”.  

A sandbox model enables testing of ideas and new uses of data without risking live systems. Mastercard’s adherence to ISO 20022 should also reassure participants about data security. 

The importance of data protection and privacy

The A2A instant payments sandbox should help push payments processing forward. Making payments easier can benefit businesses and consumers alike. But as industries advance, they must not leave data protection and privacy standards behind. 

Businesses sometimes see innovation and data protection as a balancing act or even a trade-off. But embedding strong data protection standards into the core of new products and features is a way to drive innovation. 

Financial institutions experimenting in advanced environments have to prioritize adaptive consent solutions. 

Consent solutions must be dynamic, continuously updating to align with shifting privacy laws, industry requirements, and customer expectations. Regulatory compliance is not static, so sandbox environments demand proactive strategies that embed consent management within their operational frameworks. 

Adaptive consent solutions should feature real-time data governance mechanisms that automatically adjust to evolving legal standards and consumer preferences. Consent solutions should provide users granular options, allowing users clear visibility and control over precisely how their personal data is used.  

Financial institutions should integrate advanced consent tools directly into their user experience, ensuring that customers can effortlessly manage, update, and revoke consent as needed, thus maintaining transparency and trust. 

Better payments processes, more consumer trust

Mastercard’s A2A instant payments sandbox is an opportunity for UK financial institutions to innovate while ensuring robust data protection and enhancing consumer trust. 

By embedding adaptive consent management practices deeply into their innovation strategies, financial institutions can drive technological advancement through more consumer trust and stronger privacy standards.