Nuvei and Plaid this week announced an expansion of their existing global partnership.
The strategic collaboration between the Canadian and US fintechs aims to facilitate a broader range of businesses in accepting bank-based payments across diverse use cases, including recurring payments, payouts, and additional e-commerce verticals such as utilities and B2B.
This expansion accompanies the partners’ intent to scale their joint operation worldwide before the end of the year. Combining Nuvei’s reach in dozens of markets and Plaid’s network across North America and overseas, the partnership will enable businesses to enhance online checkout experiences through modern pay-by-bank solutions, according to a joint statement released by the firms.
Recent years have seen an upward trajectory in the demand for bank-based payments from both consumers and merchants, Canada’s Nuvei notes. As per data compiled for the fintech, bank-based payments have become the third most popular online payment method in the U.S., trailing only behind credit and debit cards. Nearly a quarter of all U.S. consumers are considering bank-based payments for general e-commerce in the next year, with the figure rising to 44% among those who have chosen bank-based payments for previous transactions.
“We aim to provide merchants with cost-effective, expedient payment solutions,” remarked Nuvei CEO Philip Fayer. “Consumers are increasingly adopting online bank transfer payments, but a poor user experience has often been a deterrent.”
Merchants are capitalizing on these payment methods given their potential to accelerate settlement times, reduce disputed transactions, and diminish operating costs, says Fayer—all upswings for profit margins and revenue growth.
The launch of Nuvei’s Instant Bank Transfer solution seeks to surmount other obstacles traditionally associated with bank-based payments, such as the tedious manual entry of account and routing numbers and concerns over online security. This solution combines Nuvei’s speedy bank payment processing with Plaid’s secure experience for bank account linking.
“Nuvei Instant Bank Transfer eliminates … barriers, democratizing this payment method for consumers and offering merchants a viable, revenue-driving alternative to card payments,” stated Fayer. “Our collaboration with Plaid ensures a seamless experience for millions of U.S. consumers, and we are thrilled to extend our partnership across a wider range of eCommerce verticals.”
The Nuvei-Plaid partnership is poised to provide real-time transaction risk assessment and reduce return rates through Plaid Signal, a network-based machine learning model.
Founded in 2013 by Zach Perret and William Hockey, San Francisco’s Plaid is a data network that powers financial tools. Nearly one in three US consumers with a bank account have connected via the Plaid network, which serves 12,000 financial institutions across the US, Canada, UK, and Europe and links to over 8,000 digital finance apps and services.
“The shift to bank-based payments is a natural, inevitable progression and will become a seamless part of most payments experiences in the next few years,” said John Anderson, Head of Payments at Plaid. “Plaid and Nuvei have a proven track record of helping companies streamline account funding experiences through bank transfers. We are excited to extend our partnership with Nuvei to bring safe, secure and seamless bank-based experiences to more companies and industries within the eCommerce realm.”
Nuvei has been making headlines for its partnerships, large enterprise commercial wins and high-profile investors over the past year—among them renowned actor Ryan Reynolds. In April, the Vancouver celebrity Ryan Reynolds unveiled an investment in Nuvei.
“We’re a global company but extremely proud of our Canadian roots and values, so to have one of the most internationally recognizable Canadians, as well as an entrepreneur with such renowned business acumen, join our investors is a privilege,” Fayer stated at the time.
“Leveraging our technology and expertise, we’re confident that this partnership will deliver outstanding value for years to come,” Fayer commented.
In addition, the firm welcomed industry veteran Laura Miller to fill the newly formed role of Chief Revenue Officer and Global Head of eCommerce.
And all of these strategic moves come in the wake of Nuvei’s recent acquisition of US rival Paya.
With services in 200 markets and more than 600 alternative payment methods, Nuvei—which trades publicly as NVEI since 2020—remains dedicated to connecting businesses to their customers.