Adyen partners with Plaid to offer Pay-by-Bank services in North America

Adyen, the global financial technology platform of choice for leading businesses, is pleased to announce its Pay-by-Bank services in North America will launch in early 2024 in partnership with Plaid, the digital finance innovator that makes it easy, safe and reliable for people to connect their financial data to apps and services. Building on Adyen’s historical investments in the region – which span a US Branch License and local tech hubs – as well as the platform’s burgeoning embedded financial services, this collaboration was designed to unlock the best enterprise payment solution of its kind.

“Plaid’s innovative, industry-leading financial technology made this partnership a great fit,” said Davi Strazza, President of North America. “Our complementary offerings together form an unparalleled Pay-by-Bank experience for businesses and end-consumers alike. This alternative payment method not only meets our customers’ demands for continually expanded payment methods – but in the process also significantly reduces costs across the payment chain for them. With this broadened offering, we look forward to continuing to position our single platform as the go-to enterprise solution in North America.”

Pay-by-Bank joins the growing list of more than 150 different payment methods offered by Adyen. As businesses dually seek seamless solutions for customers and cost-efficiency in their back-end operations, Pay-by-Bank provides an optimized answer to both needs. Juniper Research estimates that Pay-by-Bank payments will globally exceed $330 billion by 2027, an increase of 479% from $57 billion in payments in 2023. Research estimates that the number of open banking Application Programming Interface (API) calls will also increase from 102 billion in 2023 to 580 billion by 2027.

“Making pay-by-bank more widely available gives consumers greater choice and flexibility and, ultimately, can help lower payment costs. Plaid is already trusted by about 1 in 3 Americans with a bank account, and provides a secure and seamless way to connect financial accounts for bank-linked payments,” said Eric Sager, Plaid COO. “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.”

Within total cost of ownership benefits, the solution from Adyen and Plaid provides businesses with improved security and fraud protection measures, ultimately reducing chargebacks and nearly eliminating transaction failures. The payment method further 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.