Canadian FinTech firm Nuvei Corporation and Plaid, an influential data network, have announced the extension of their existing partnership, aiming to transform the eCommerce landscape by optimising bank-based payment experiences.
The enhanced alliance will strive to support a wider range of businesses in accepting bank-based payments for various uses, including recurring payments and payouts, and will extend its reach to new eCommerce sectors such as utilities and B2B.
The two firms are set to scale their collaboration globally by year-end, leveraging Nuvei’s local acquiring in 47 markets and Plaid’s expansive network covering 12,000 financial institutions across the US, Canada, UK, and Europe. This move promises to bolster online checkout experiences for businesses worldwide.
Nuvei and Plaid have become renowned for offering superior pay-by-bank experiences, catering to the growing demand from consumers and merchants alike. The popularity of bank-based payments has risen significantly in the US, positioned as the third most preferred online payment method after credit and debit cards.
The survey data reveals that 23% of US consumers are considering bank-based payments for general eCommerce payments within the next year, with 44% of those who’ve used this method in the past likely to continue doing so.
The new funds aim to revolutionise the bank-based payment sector, offering faster settlement times, reduced disputed transactions, and lower operating costs. Furthermore, the partnership presents a solution to streamline transaction risk assessment in real time, using Plaid Signal, a network-based machine learning model.
By optimising this payment method, Nuvei and Plaid aim to overcome the traditional challenges associated with bank-based payments, such as security concerns and cumbersome manual processes.
Nuvei CEO and Chair Philip Fayer articulated their objectives, “We want to support merchants with payment solutions with lower processing costs and quicker access to funds. Consumers are increasingly turning to online bank transfer payments, but their user experience has often been poor.
“Nuvei Instant Bank Transfer eliminates the barriers to adoption, democratising this payment method for consumers and offering merchants a genuine revenue-driving alternative to card payments. Our partnership with Plaid makes online bank transfer payments even more seamless for millions of U.S. consumers, which is why we’re excited to be expanding our partnership to target a broader range of eCommerce verticals.”
Head of Payments at Plaid, John Anderson, shared his vision, “The shift to bank-based payments is a natural, inevitable progression and will become a seamless part of most payments experiences in the next few years.
“Plaid and Nuvei have a proven track record of helping companies streamline account funding experiences through bank transfers. We are excited to extend our partnership with Nuvei to bring safe, secure and seamless bank-based experiences to more companies and industries within the eCommerce realm.”
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