Plaid, a FinTech that enables third-party platforms to integrate into bank account data, has been named as a preferred partner by Nacha.
The ACH payments organization said in a press release on Thursday (Aug. 29) that Plaid has joined Nacha's ecosystem as a preferred partner for account validation, pointing to Plaid's ability to promote efficiency, cash flow management and risk mitigation for ACH transactions.
"Minimizing payments risk and fraud is vitally important, and account validation solutions have a key role to play in that," said Nacha President and CEO Jane Larimer in a statement. "Improving transaction quality in the payments industry requires a wealth of expertise, and so Nacha is pleased to welcome Plaid as a Nacha Preferred Partner."
“Plaid strives to improve the world’s financial data network through innovation. We’re excited that Nacha selected us as a Preferred Partner with the capabilities to help merchants and service providers perform account validation,” said Sima Gandhi, Plaid's head of business development, in another statement. “We aim to help businesses successfully leverage the ACH ecosystem by providing a robust account authentication mechanism with comprehensive coverage and seamless user experiences.”
In May, Plaid launched its Plaid Direct service, which enables two-way connectivity for consumers to more easily move money between their accounts.
In June, Plaid revealed that its Co-founder, CTO and President William Hockey would step down, though he would remain on its board of directors. In the announcement, Hockey said the decision had been planned over a long period of time as he looked to move into a purely strategic role for the organization.
Other recently announced preferred partners for Nacha include MicroBilt, another account verification partner announced in May, as well as AeroPay Express as a B2B Electronic Payment Enablement preferred partner and Bottomline Technologies as a Business-to-Business Payments partner.