Plaid Launches Pay-by-Bank Solution for Recurring Payments

Plaid has introduced its new “Pay by Bank for Bill Pay” solution, designed to enable businesses to offer customers a secure, seamless way to pay bills directly from their bank accounts. The service helps businesses reduce processing costs and minimize returns for recurring payments, according to a blog post preview shared with PYMNTS on October 8, 2024.

Brian Dammeir, Plaid’s General Manager and Head of Payments, emphasized that paying via bank account can deliver a more reliable experience than cards by combining optimal verification with intelligent risk assessment. The solution simplifies the payment process by allowing users to easily select their bank without leaving the platform and offers a one-click option for returning customers.

The new feature also reduces payment returns, optimizes approvals, and detects fraud in real time by flagging abnormal transaction patterns. Already in use by industries like telecommunications, insurance, and property management, Pay by Bank for Bill Pay integrates with payment processors such as Adyen, Nuvei, and Checkout.

Plaid’s solution comes as account-to-account (A2A) payments, also known as pay by bank, gain traction in the U.S., with 36% of consumers citing convenience and speed as key benefits.