Plaid and Adyen team-up to take US market share

European payments giant Adyen is teaming up with US open banking provider Plaid to roll out its pay-by-bank offering in North America by early 2024.

The partnership will further expand Adyen’s offering in the US and Canada where it already offers over 150 different payment methods while also helping Plaid to grow its volumes of open banking payments.

“Making pay-by-bank more widely available gives consumers greater choice and flexibility and, ultimately, can help lower payment costs,” Eric Sager, Plaid’s chief operating officer said.

“In partnership with Adyen, we’ll bring pay-by-bank and marketplace onboarding to more companies in North America, helping them lower payment cost, increase conversion, and reduce both fraud and payment losses.”

Plaid expects to power close to two billion open banking payments in 2023, with the Adyen partnership expected to grow this number considerably in 2024.

“This alternative payment method not only meets our customers’ demands for continually expanded payment methods – but in the process also significantly reduces costs across the payment chain for them,” Davi Strazza, Adyen’s president of North America said.

According to Juniper Research, open banking payments globally currently sit at around $57bn, with that figure expected to soar by nearly 500 per cent to over $330 by 2027.

Markets like Europe, India and Brazil are already well on their way to adopting open banking payments, while businesses in the US remain heavily reliant on more costly card payments.