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Adyen and Plaid Partner on Pay-by-Bank Offering in North America

Global financial technology platform Adyen has partnered with digital finance firm Plaid to introduce Pay-by-Bank services in North America in early 2024.

Adyen has made substantial investments in North America, including obtaining a U.S. Branch License and establishing local tech hubs. By combining these investments with Plaid’s technology, Adyen aims to unlock this enterprise payment solution in the region, the company said in a Thursday (Nov. 2) press release.

The Pay-by-Bank service joins a list of over 150 payment methods offered by Adyen, according to the release. Pay-by-Bank offers a seamless customer experience and cost-efficiency, meeting the needs of businesses.

“With this broadened offering, we look forward to continuing to position our single platform as the go-to enterprise solution in North America,” Davi Strazza, president of North America at Adyen, said in the release.

Eric Sager, chief operating officer at Plaid, emphasized the benefits of wider availability of pay-by-bank, including greater choice and flexibility for consumers and lower payment costs. Plaid provides a secure and seamless way to connect financial accounts for bank-linked payments, he said.

“In partnership with Adyen, we’ll bring pay-by-bank and marketplace onboarding to more companies in North America, helping them lower payment cost, increase conversion, and reduce both fraud and payment losses,” Sager said.

The collaboration between Adyen and Plaid not only enhances security and fraud protection measures but also reduces chargebacks and transaction failures, according to the press release. This payment method also empowers enterprise merchants to process larger payment volumes.

Adyen’s Pay-by-Bank offering, provided by Plaid, is expected to be available in early 2024, the release said.

PYMNTS Intelligence has found that pay-by-bank transfers were the third most popular means for consumer bill pay, after debit cards and credit cards.

Thirty-three percent of the consumers who made recurring bill payment via an online bank transfer said ease and convenience were the most important reasons for using this method, according to “New Payment Options: Building Stronger Customer Ties With Pay By Bank Transfer,” a PYMNTS and Nuvei collaboration.

The report also found that while consumers are using online bank transfers for purchases far less than they are for paying bills at this time, 42% of those who have done so when shopping online said ease and convenience are the most important reasons they used the method.