Global payments network MoneyGram has picked fintech firm Plaid as its pay-by-bank provider in the US.
This collaboration allows MoneyGram customers in the US to authenticate their bank accounts using Plaid’s technology, which is said to facilitate quicker and more secure funding for both domestic and international transactions.
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The integration, designed to enhance the MoneyGram Online (MGO) platform, will expand into additional markets later this year.
The pay-by-bank feature connects to Plaid’s extensive network, which includes thousands of banks and credit unions.
MoneyGram said its customers will benefit from enhanced security through its anti-fraud measures, combined with Plaid’s instant account verification.
Plaid payments and financial management head Brian Dammeir said: “Plaid provides the most widely used and trusted network across digital financial services, covering thousands of financial institutions across the United States, Canada, Europe and the UK.
“Now, MoneyGram can leverage the power of the Plaid network to quickly and securely drive conversion, reduce bank returns and proactively prevent fraud.”
Research indicates that consumers are increasingly seeking “connected” financial services, highlighted MoneyGram.
Over 75% of individuals in the US consider it important to link their bank accounts with financial applications, according to the company.
Furthermore, more than 85% of users of financial technology prefer pay-by-bank options due to their convenience, speed, and security.
MoneyGram CEO Anthony Soohoo said: “The MoneyGram network moves money for over 50 million customers each year, across nearly every country in the world.
“This partnership with Plaid expands our global capabilities to deliver faster, more secure payments for our customers.”
MoneyGram’s network covers more than 200 countries and territories, with approximately 450,000 retail locations and five billion digital endpoints.
Earlier this month, Plaid raised $575m in a funding round led by Franklin Templeton, with participation from Fidelity Management and existing investors NEA and Ribbit Capital.
