MoneyGram and Plaid Partner to Boost Global Payments

MoneyGram and Plaid have formed a strategic partnership to offer real-time, secure, API-driven fintech infrastructure that will streamline the process of payment funding and bank account verification.

MoneyGram customers in the United States can access fast and secure bank account authentication by using Plaid’s technology. The partnership is set to widen across the world later in the year and will help improve the MoneyGram Online (MGO) experience.

By integrating global payment capabilities with smart, secure data connectivity, this partnership will help to meet rising expectations for secure, real-time and user-friendly financial services.

Anthony Soohoo, CEO of MoneyGram, explains: “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. It’s a clear step forward in our mission to make cross-border payments seamless, affordable and secure for everyone.”

Why does this partnership matter?

MoneyGram and Plaid’s partnership showcases how fintech infrastructure providers and traditional fintechs can collaborate to solve systemic industry challenges.

Plaid’s API-led platform allows MoneyGram to integrate pay-by-bank features into its digital experience, mirroring the industry shift towards embedded finance, where banking functions are integrated as part of non-bank platforms. This encourages fintechs to embrace embedded models that improve margins and user experience.

MoneyGram unlocks a scalable solution that can expand into new markets by calling upon Plaid’s access to many financial institutions across North America and Europe, helping to strengthen open banking adoption.

Modern users expect seamless, instant and secure financial interactions. This partnership will support these by offering a quicker payment execution and smoother onboarding process, all while reducing fraud risks.

The MoneyGram-Plaid partnership will encourage more traditional financial institutions to partner with or build on top of fintech platforms to stay competitive in the evolving financial ecosystem.

It will act as an example for modernising financial services to help bridge the gap between legacy systems and modern fintech capabilities. This highlights how the next stage of fintech innovation will be driven by partnerships that combine infrastructure, scale and trust.

Technology and integration

Behind this strategic partnership is a tech-forward integration that utilises MoneyGram’s global payments infrastructure and Plaid’s financial data APIs to secure and streamline the process of funding transactions.

Plaid’s platform enables instant bank account verification, allowing users to securely link their bank accounts without the manual input of routing and account numbers. Not only does this help to eliminate delays and errors from manual data entry, but it will also reduce the risk of failed transactions due to incorrect bank details.

The integration enables pay-by-bank transactions, where funds will be directly deposited from a verified bank account rather than through third-party wallets. This will offer a more streamlined payment experience and faster settlement times.

Plaid offers pre-transaction risk checks and fraud detection signals during the account-linking process and MoneyGram focuses on its compliance, AML and KYC protocols. Combined, these quill boost regulatory compliance and payment security, reducing the risk of fraudulent transactions.

By integrating MoneyGram’s global payments network and compliance engine with Plaid’s identity, connectivity and verification APIs, the companies offer a secure and scalable experience that caters to the future of API-led financial services.

Brian Dammeir, Head of Payments and Financial Management at Plaid, says: “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 United Kingdom.

“Now, MoneyGram can leverage the power of the Plaid network to quickly and securely drive conversion, reduce bank returns and proactively prevent fraud.”

Powering the future of cross-border payments

Plaid and MoneyGram’s partnership will help redefine the cross-border payments industry by combining legacy remittance scale with modern fintech capabilities.

Users benefit from near-instant or real-time global transfers through instant account verification, reducing delays caused by manual input or verification processes.

Enhanced security is achieved through combining MoneyGram’s regulatory compliance systems with Plaid’s fraud detection tools.

Plaid’s open banking infrastructure will also enhance rapid market entry and remove the need for country-specific integrations.

Not only will it enhance financial inclusion for underbanked communities, but the partnership will ensure future-readiness and adaptability as open banking regulations continue to change globally.

The MoneyGram-Plaid partnership will act as an example in the fintech ecosystem for how established financial institutions can innovate through collaboration.

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