MoneyGram, Plaid team up on pay-by-bank service in US
This collaboration allows MoneyGram customers in the US to authenticate their bank accounts using Plaid's technology, which is said to facilitate quicker and more secure funding for both domestic and international transactions.
The integration, designed to enhance the MoneyGram Online (MGO) platform, will expand into additional markets later this year.
The pay-by-bank feature connects to Plaid's extensive network, which includes thousands of banks and credit unions.
MoneyGram said its customers will benefit from enhanced security through its anti-fraud measures, combined with Plaid's instant account verification.
Plaid payments and financial management head Brian Dammeir said: 'Plaid provides the most widely used and trusted network across digital financial services, covering thousands of financial institutions across the United States, Canada, Europe and the UK.
'Now, MoneyGram can leverage the power of the Plaid network to quickly and securely drive conversion, reduce bank returns and proactively prevent fraud.'
Research indicates that consumers are increasingly seeking 'connected' financial services, highlighted MoneyGram.
Over 75% of individuals in the US consider it important to link their bank accounts with financial applications, according to the company.
Furthermore, more than 85% of users of financial technology prefer pay-by-bank options due to their convenience, speed, and security.
MoneyGram CEO Anthony Soohoo said: 'The MoneyGram network moves money for over 50 million customers each year, across nearly every country in the world.
'This partnership with Plaid expands our global capabilities to deliver faster, more secure payments for our customers.'
MoneyGram's network covers more than 200 countries and territories, with approximately 450,000 retail locations and five billion digital endpoints.
Earlier this month, Plaid raised $575m in a funding round led by Franklin Templeton, with participation from Fidelity Management and existing investors NEA and Ribbit Capital.
"MoneyGram, Plaid team up on pay-by-bank service in US" was originally created and published by Retail Banker International, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
3 days ago
- Yahoo
Will Plaid SPAC or IPO in 2025?
Key Points Visa planned to acquire Plaid in 2020, but the deal was abandoned after regulators expressed concerns. The fintech recently raised capital at a $6.1 billion valuation. Plaid's management has said that an IPO won't happen in 2025 but that it will at some point. These 10 stocks could mint the next wave of millionaires › There are several highly anticipated financial technology, or fintech, IPOs that are likely to occur within the next few years. One of them is financial data network operator Plaid, which connects financial institutions and applications, and was former a Visa (NYSE: V) acquisition target. Plaid securely connects financial institutions and applications. For example, when I wanted to link my checking account to make mortgage payments at a different bank, Plaid was the tool that was used to connect them. When I wanted to verify income deposits into my bank account for loan approval purposes, it was Plaid that made it possible. These are just a few examples, and there are many others, such as connecting with your bank account to set up secure, recurring payments. Plaid's traction has been impressive. Over half of all U.S. adults have used the platform, and from a business perspective, offering Plaid's seamless connectivity results in 25% higher sign-ups. The company makes its money primarily through volume-based subscription plans sold to business customers. At this time, we don't know Plaid's exact IPO timeline. But the company has made it clear that an IPO is in the future, so here's what investors should keep in mind and what we know so far. Plaid's failed merger and recent funding activity Plaid was founded in 2013 and has grown impressively, connecting with well over 11,000 financial institutions in the U.S. and elsewhere. In 2020, the company agreed to be acquired by Visa for $5.3 billion, but the deal ended up being cancelled because the Department of Justice sued to block it over antitrust concerns. More recently, Plaid raised $575 million in fresh capital in April of this year at a $6.1 billion valuation. This is less than half of its peak valuation in a 2021 funding round but is still more than the $5.3 billion Visa had been prepared to pay. And to be clear, it's very common for private tech companies to command lower valuations in today's market environment than in the 2021 zero-interest days. Will Plaid go public or SPAC in 2025? The recent fundraising round should take care of Plaid's near-term capital needs and makes an IPO in 2025 highly unlikely. At the time of the raise, a company spokesperson specifically said that Plaid won't go public in 2025. Of course, that isn't a guarantee that we won't see an IPO, and if the tech IPO market and valuations heat up, it's still entirely possible. It's also worth noting that Plaid doesn't necessarily need to use a traditional IPO to go public. Special-purpose acquisition companies, or SPACs, are making a comeback this year. Through the end of the second quarter, 71 of these blank-check companies have listed on the public markets in search of merger targets, more than in all of 2024, and this can be a desirable way to go public and raise lots of capital at the same time. Finally, just because management has said that an IPO won't happen this year doesn't mean something -- either a traditional IPO or SPAC merger -- won't be announced by the end of the year. The short version is that Plaid is likely to go public within the next few years, but the timeline remains uncertain -- for now. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $442,907!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $40,654!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $634,627!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of July 21, 2025 Matt Frankel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Visa. The Motley Fool has a disclosure policy. Will Plaid SPAC or IPO in 2025? was originally published by The Motley Fool
Yahoo
3 days ago
- Yahoo
Crypto Industry Asks President Trump to Stop JPMorgan's 'Punitive Tax' on Data Access
Ten of the largest trade associations in fintech and crypto have called on President Donald Trump to intervene in what they say is a coordinated attack by big banks to stifle innovation and lock out competitors. In a letter sent on Wednesday, the groups, which include the Blockchain Association, and the Crypto Council for Innovation, warned that JPMorgan's plan to charge fees for access to consumer banking data threatens to de-bank millions of Americans and could cripple the adoption of stablecoins (USDC, USDT) and self-custody wallets. At the center of the fight is how Americans fund digital wallets and exchanges. Aggregators like Plaid and MX enable consumers to transfer funds from their bank accounts to platforms like Coinbase or Kraken. These connections rely on direct access to user-permissioned data. Until now, banks have allowed that access without charging fees. However, JPMorgan has begun informing aggregators that they'll need to pay for it—reportedly up to $300 million per year for Plaid alone which would amount to more than 75% of company's revenue. "Let us be clear: financial data belongs to the American people, not the banks," the letter reads. "By challenging open banking, the largest banks stand in direct opposition to your vision of making America the financial innovation capital of the world." The letter urges the White House to act before July 29, when the administration is due to file a legal brief in the court battle over the Consumer Financial Protection Bureau's open banking rule. The CFPB's open banking rule, finalized in late 2024 as Rule 1033, requires banks to give consumers free access to their account data and allow them to share it with third-party services. The rule was meant to level the playing field between banks and fintechs. But banks sued to block it on the day it was finalized, and the CFPB has since asked the court to vacate the rule entirely. In a post on X, Kraken co-CEO Arjun Sethi called JPMorgan's move a 'calculated shift' that turns user-generated data into a toll, warning that the industry is witnessing a familiar pattern of centralization turning into control. 'There is a version of the future where every financial interaction is intermediated by systems that monitor, price, and gate access to your own data,' he wrote. 'Crypto presents an alternative. But that alternative is not guaranteed.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
4 days ago
- Bloomberg
US Stocks Climb After Trade Agreement with European Union
Bloomberg Television brings you the latest news and analysis leading up to the final minutes and seconds before and after the closing bell on Wall Street. Today's guests are Strategas Securities's Todd Sohn, Financial Insyghts' Peter Atwater, Morgan Stanley's Brian Harbour, DVx Ventures's Karim Bousta, Franklin Templeton's Katrina Dudley, Greber Kawasaki Wealth and Investment Management's Ross Gerber, Wedbush Securities' Scott Devitt, MNTN's Mark Douglas, The Westly Group's Steve Westly , Cox Automotive's Stephanie Valdez Streaty, NYU Professor Meredith Broussard. (Source: Bloomberg)
