Money transfer service MoneyGram teams up with Plaid for Pay by Bank integration across the United States.
In a groundbreaking move, MoneyGram and Plaid have joined forces to enhance cross-border payment services, offering faster, more secure, and more convenient transactions for users worldwide.
The collaboration leverages Plaid’s bank connectivity and authentication strengths, enabling instant account verification and payment initiation for MoneyGram customers [1][2][4]. This streamlined process reduces delays typically associated with manual bank authentication or card payments at cross-border transactions.
Regarding security, Plaid’s authentication protocols ensure that bank accounts are linked safely without exposing sensitive information directly to MoneyGram. The partnership also sees MoneyGram's compliance and anti-fraud systems combined with Plaid’s technology to further bolster security measures [4].
For convenience, MoneyGram customers can add a new bank account through Plaid instantly within the MoneyGram platform and use it for sending money across borders without juggling multiple banking integrations. This integrated single-API approach means MoneyGram can offer a broad network of receive options without complex user-side configuration, allowing users seamless access to many markets from one place [1][2].
Moreover, MoneyGram's cross-border payment network spans over 200 countries and territories, while its network includes approximately 450,000 retail locations and five billion digital endpoints [3]. With Plaid's network comprising thousands of banks and credit unions across the United States, Canada, Europe, and the United Kingdom, the partnership aims to deliver a comprehensive solution for global transactions [5].
The partnership is expected to be rolled out to additional markets later this year, further expanding MoneyGram's global capabilities [6]. MoneyGram users in the US will be able to authenticate their bank accounts for both domestic and cross-border payments [7].
The preference for Pay by Bank among financial technology users is over 85%, citing ease, speed, and added security as key advantages [8]. With this partnership, MoneyGram customers will benefit from Plaid's instant account verification, enabling faster and more secure transactions [9].
Plaid has recently announced a $575m fundraise, positioning the company for continued growth and innovation in the financial technology sector [2]. Brian Dammeir, the head of payments and financial management at Plaid, and Anthony Soohoo, MoneyGram’s chief executive officer, will lead the teams in this strategic partnership.
Notably, Plaid is a Platinum Partner of Open Banking Expo USA 2025, taking place in New York on June 26 [10]. This event is expected to bring together industry leaders, innovators, and regulators to discuss the future of open banking and its impact on the financial services landscape.
MoneyGram moves money for over 50 million customers each year, across nearly every country in the world [11]. The partnership with Plaid is set to redefine the cross-border payment landscape, offering users a more seamless, secure, and efficient experience.
[1] https://www.plaid.com/ [2] https://techcrunch.com/2023/02/01/plaid-raises-575m-at-a-13-7b-valuation-to-help-financial-apps-access-your-bank-data/ [3] https://www.moneygram.com/us/en/about-us/company-overview.html [4] https://www.plaid.com/solutions/authentication/ [5] https://www.plaid.com/network/ [6] https://www.moneygram.com/us/en/about-us/press-room/press-releases/moneygram-partners-with-plaid-to-simplify-and-secure-cross-border-payments.html [7] https://www.moneygram.com/us/en/about-us/press-room/press-releases/moneygram-partners-with-plaid-to-simplify-and-secure-cross-border-payments.html [8] https://www.moneygram.com/us/en/about-us/press-room/press-releases/moneygram-partners-with-plaid-to-simplify-and-secure-cross-border-payments.html [9] https://www.plaid.com/solutions/payments/ [10] https://www.openbankingexpo.com/usa/ [11] https://www.moneygram.com/us/en/about-us/company-overview.html
- The collaboration between MoneyGram and Plaid, founded on Plaid's bank connectivity and authentication strengths, aims to provide faster, more secure, and convenient cross-border payment services to users globally.
- With Plaid's technology and MoneyGram's compliance and anti-fraud systems combined, this partnership will bolster security measures, linking bank accounts safely without exposing sensitive information directly to MoneyGram.
- The integrated single-API approach will enable MoneyGram users to add a new bank account within the MoneyGram platform, offering a broad network of receive options without complex user-side configuration, and seamless access to multiple markets from one place.
- Plaid's network, comprising thousands of banks and credit unions across various regions, combined with MoneyGram's cross-border payment network, aims to deliver a comprehensive solution for global transactions, spanning over 200 countries and territories.
