MoneyGram has partnered with Plaid to offer pay-by-bank services for US customers, aiming to streamline both domestic and international payments.
MoneyGram Partners with Plaid to Enhance Pay-by-Bank Services in the US
Announced on Thursday, the partnership allows MoneyGram users in the US to authenticate their bank accounts through Plaid’s financial network.
The service is expected to improve the MoneyGram Online experience. It is expected to scale to additional markets later this year.
“The MoneyGram network moves money for over 50 million customers each year, across nearly every country in the world,” said Anthony Soohoo, Chief Executive Officer at MoneyGram.
“This partnership with Plaid expands our global capabilities to deliver faster, more secure payments for our customers. It’s a clear step forward in our mission to make cross-border payments seamless, affordable and secure for everyone.”
Plaid’s network connects to thousands of banks and credit unions across the United States, Canada, Europe and the UK.
The firm explained that the integration will allow MoneyGram to boost customer conversion, reduce bank returns and improve fraud prevention through Plaid’s instant account verification.
Brian Dammeir, Head of Payments and Financial Management at Plaid, said: “Now, MoneyGram can leverage the power of the Plaid network to quickly and securely drive conversion, reduce bank returns and proactively prevent fraud.”
The companies claim that data shows more than 75% of U.S. consumers express a preference for financial apps with bank account linking capabilities, and over 85% of fintech users favour pay-by-bank options.
