Partnership to Enhance Payment Options
European payments giant Adyen is joining forces with US open banking provider Plaid to introduce its pay-by-bank service in North America starting from early 2024. Adyen, already offering over 150 different payment methods in the US and Canada, aims to further expand its offering while enabling Plaid to boost its volumes of open banking transactions.
Advantages for Consumers and Businesses
Eric Sager, Plaid’s chief operating officer, emphasized that making pay-by-bank more accessible brings greater choice and flexibility to consumers. Moreover, it can help reduce payment costs. The partnership between Adyen and Plaid will enable more companies in North America to embrace pay-by-bank and streamline marketplace onboarding. This move will lower payment costs, increase conversion rates, and mitigate fraud and payment losses.
Growth in Open Banking Payments
Plaid projects that it will facilitate close to two billion open banking transactions in 2023. With the collaboration with Adyen, this number is expected to substantially increase in 2024. Davi Strazza, Adyen’s president of North America, highlighted that this payment alternative meets customer demands for diversified payment methods while significantly reducing costs across the payment ecosystem. According to Juniper Research, global open banking payments currently amount to approximately $57 billion, a figure set to surge by nearly 500% to over $330 billion by 2027. While countries like Europe, India, and Brazil are leading the way in adopting open banking payments, businesses in the US primarily rely on more expensive card payments.
