Plaid’s Post

The savings from Pay by Bank are clear. Plaid is powering the next wave of #payment tech to unlock financial freedom for all! Check out the stats below 👇

Klarna's new Pay-by-bank is going to be interesting to watch. World largest BNPL company is taking on the Visa / Mastercard duopoly. Hardest part about Pay-by-bank is (1) merchant adoptance (2) consumer incentives (ie rewards). Interesting thing about Klarna...they've already solved for both at reasonable scale. (1) 500,000 Merchants use Klarna (2) Klarna can offer rewards to the ~150 million consumers using their products which are merchant funded (in fact many merchants already subsidize BNPL, so this is simply repackaging existing practices) Added bonus -- the newly inked bank accounts can help Klarna w/ underwriting. Visa and Mastercard have incredible network effects. They aren't going anywhere soon, but if anyone can given them a run for their money in certain categories (like large ticket consumer items), it is BNPL providers like Klarna and Affirm by leveraging their massive merchant and consumer footprints.

Decoding Payment Orchestration At its core, #payment_orchestration is the art of seamlessly integrating and managing the entire payment process, including payment authorizations, transaction routing, and settlements. It brings agility to organizations, allowing them to scale rapidly, explore new markets, assimilate #payment_providers from different regions, and accommodate various currencies while ensuring compliance with relevant regulations. #Payment_orchestration_platforms offer a bridge for online businesses, connecting their websites with multiple #payment_service_providers. They simplify both the back-end and front-end processes, providing consumers with an array of payment options. By consolidating various payment service providers and payment methods such as PayPal, Mastercard, American Express, and Visa, these platforms enable online retailers to manage their #payment_service providers from a single platform.

Open banking, Real-Time Payments (RTP), and FedNow offer a significant advantage for both consumers and merchants. They enable faster settlement times, potentially reducing fees for both parties. Additionally, open banking fosters a more level playing field for merchants of all sizes by promoting greater transparency and potentially reducing reliance on traditional processing partners.

Bringing #zelle to the checkout would be a fascinating development in US #payments. This would be taking on the dominance of #cards head on and given more control to the #banks that manage #zelle. I'm going to watch this closely. On a broader note we're beginning to see #A2A #payments more and more at the checkout with #merchants pushing back on fees. https://lnkd.in/e5EiFSRE?

"The Consumer Financial Protection Bureau declared on Wednesday that customers of the burgeoning buy now, pay later industry have the same federal protections as users of credit cards." That means the industry — currently dominated by fintech firms like Affirm, Klarna and PayPal — must make refunds for returned products or canceled services, must investigate merchant disputes and pause payments during those probes, and must provide bills with fee disclosures." You can read more in the links below but needless to say, the usual carry on about how unfair it is and credit cards are outdated pours out of the PR machines. In many respects, this is all redundant given the monoline BNPL's are all morphing into credit cards anyway. Here are some links 👇👇👇👇 https://lnkd.in/gWH5sRXh 👇👇👇👇 https://lnkd.in/gGkPQh2q 👇👇👇👇 https://lnkd.in/gichHXju #payments #bnpl #buynowpaylater

Visa and Mastercard are planning to boost the fees that many retailers pay when accepting customers’ credit and debit cards. The additional Visa charges will be for online transactions and commercial credit, debit and prepaid cards. For Mastercard, there’s a new pre-authorization fee for credit-card purchases. With the increases, merchants could pay more than $500 million in additional fees each year.(Bloomberg)

The payment landscape is shifting fast. Over 40% of Gen Z are using debit cards for their daily transactions and 55% of all consumers are using debit more frequently than they were a year ago. This surge is largely influenced by the rise of digital wallets. Because of this demand, an impressive 95% of merchants now accept debit cards. As this trend continues to grow, businesses that adapt and accept various forms of debit will keep winning the loyalty of the digital-first Gen Z and millennial customers. Stay ahead of the game with ReliaFund's full-service payment processing solutions. Learn more → https://bit.ly/3JjcQGE #ReliaFund #DigitalPayments #DebitCards

Is Buy Now Pay Later rewarding you enough? 💡Did you know that cash isn't going anywhere (yet!), but new tech is making faster payments safer? 👉Discover how Visa and Mastercard are reimagining online checkout for a smoother experience. 💥Get the latest on these hot payment trends in our Inside Payments newsletter. #payments #ecommerce #fintech Read More: https://lnkd.in/d9rUCp5U

🚀 Mastercard partners with FinXP to launch cross-border payments 🌍 Together, we're introducing FinXP PLUS to transform the way businesses conduct international payments. 🌐 Leveraging Mastercard's global network, FinXP will use Mastercard's cross-border services to expand its reach and provide its diverse customer base with access to a wide range of international payment options. 💼 Modernizing corporate cross-border payments FinXP PLUS offers a proprietary platform that enables secure transactions to over 100 countries, supporting multiple currencies, including USD, GBP, EUR, CAD, and more. What sets it apart is its support for multi-channel transfers, allowing merchants to adapt to various payment preferences around the world. 💳 With the integration of FinXP's Euro IBAN service called IBAN4U users can enjoy dedicated corporate accounts paired with Mastercard debit cards. It's a comprehensive account solution that facilitates payments, payouts, and debit card usage. “Our latest collaboration with Mastercard reinforces our commitment to offer merchants with a seamless payment experience, that means the ability to make fast and reliable payments at a cost-efficient price with an easy-to-use platform,” said Jens Podewski, co-founder and CEO of FinXP. “Our partnership with FinXP will provide its customers with a safe, simple and reliable cross-border payments experience, regardless of whether they want to send money to a bank account, card, digital wallet or cash withdrawal location,” said Dr. Peter Robejsek, Country Manager at Mastercard. The link to the article is in the comments. 👇 #Mastercard #FinXP #CrossBorderPayments