Financial services company MoneyGram teams up with Plaid for the launch of Pay by Bank in the US.
In a significant move to streamline international money transfers, MoneyGram and Plaid have announced a partnership that promises to make cross-border payments seamless, affordable, and secure for millions of users worldwide.
The partnership leverages Plaid's capabilities in bank account authentication and MoneyGram's extensive global payments network. Key benefits include improved bank account authentication, expanded digital payment options, network integration efficiency, ubiquity and convenience, and facilitated faster transactions.
Plaid simplifies and secures how customers authenticate bank accounts across multiple major markets, enhancing the reliability and speed of initiating payments. By connecting to various payment and payout methods through a single API, MoneyGram can offer customers more flexibility and convenience in sending and receiving funds internationally.
As a network integrator, MoneyGram stitches together multiple payment solutions, allowing partners to offer diverse receiving options globally without integrating each provider themselves. This partnership supports MoneyGram’s goal to evolve its services to meet modern consumer preferences by providing fast, secure, and widely accessible digital and physical payment options worldwide.
Using Plaid’s authentication and connectivity allows near-real-time payments, which reduces friction in cross-border remittances and broadly improves customer experience. This synergy helps MoneyGram maintain relevancy while growing its digital-first offerings in the international money transfer space.
Brian Dammeir, the head of payments and financial management at Plaid, expressed his enthusiasm for the partnership, saying, "We're excited to partner with MoneyGram to bring the benefits of open banking to their customers, making cross-border payments faster, more secure, and more accessible than ever before."
Anthony Soohoo, MoneyGram's chief executive officer, also expressed his excitement, stating, "This partnership is a clear step forward in MoneyGram's mission to make cross-border payments seamless, affordable, and secure for everyone."
MoneyGram moves money for over 50 million customers each year, across nearly every country in the world. With this partnership, MoneyGram users in the US will be able to authenticate their bank accounts for funding both domestic and cross-border payments. MoneyGram's cross-border payment network spans more than 200 countries and territories, approximately 450,000 retail locations, and five billion digital endpoints.
Plaid, a Platinum Partner of Open Banking Expo USA 2025, which takes place in New York on June 26, offers an opportunity for individuals and businesses to learn more about the partnership and its implications for the future of cross-border payments.
Interestingly, more than 75% of US consumers find linking their bank accounts with financial apps important. MoneyGram customers will benefit from Plaid's instant account verification, combined with MoneyGram's compliance and anti-fraud systems. Plaid's network can help MoneyGram quickly and securely drive conversion, reduce bank returns, and proactively prevent fraud.
With a recent $575m fundraise, Plaid is well-positioned to continue driving innovation in the financial technology sector. This partnership is poised to significantly enhance MoneyGram's global capabilities to deliver faster, more secure payments for its customers.
- The partnership between MoneyGram and Plaid utilizes Plaid's technology for bank account authentication, enhancing the security of cross-border payments.
- The integration of Plaid's API by MoneyGram offers expanded digital payment options, providing users with more flexibility and convenience in managing their finances.
- With Plaid's network, MoneyGram can offer faster, secure, and more accessible digital and physical payment options on a global scale, aligning with the company's goal to evolve with consumer preferences.
- The partnership between MoneyGram and Plaid is anticipated to significantly improve the efficiency of network integration and reduce friction in cross-border remittances, broadly benefiting customer experience.
