Paysend and Plaid initiate open banking partnership

Paysend has announced a partnership with Plaid, aimed at supplying the latter’s 3.5 million customers with open banking payments to enable low-cost international money transfers.

The partnership will provide customers with a ‘click, confirm, and carry on’ solution using Plaid’s open banking platform, offsetting the need to conduct manual bank transfers or type out card numbers.

This instant payment initiation service will reduce the time and clicks it takes to authorise a transfer by up to 80 per cent, according to the partners.

Paysend will also provide insights into customers transaction data, assisting with improving financial choices, as well as insights into personal financial data to help prevent overspending. 

Additionally, the fintech is offering extra incentives for customers who conduct transactions utilising Plaid’s Paysend initiation solution.

The partnership has been formed against the backdrop of the COVID-19 pandemic, as foreing workers have been ‘one of the most severely impacted demographics given their employment exposure to the sectors hardest hit by the pandemic’.

Paysend and Plaid intend to collaborate to assist these overseas employees with international transactions, such as sending money to families in their home countries, as the World bank predicts a 21% decrease in dollar flow in 2021.

Furthermore, the collaboration  aims to provide an easier, more convenient and low cost alternative to traditional methods of payment and overseas cash transactions.

The announcement follows Plaid’s partnership with London-based payment service Curve, aimed at providing a better financial management services solution via the latter’s card and app, connected via Plaid’s platforms to a range of banks and financial organisations including Monzo, HSBC, Starling and Barclays.