Railsbank and Plaid Partner to Offer Payment Initiation

Fazzaco learned that Banking-as-a-Service (BaaS) provider Railsbank has announced a strategic partnership with Plaid to make it easier for UK companies and brands to embed finance into their customer journey.

According to the official press release, a key goal of the partnership is to meet the rising need from companies and brands, both within and outside the financial services industry, who are adding end-user wallets, payments, savings, credit and bank accounts to their platforms and wish to simplify the process. 

Railsbank and Plaid will enable customers to offer Payment Initiation to consumers and SMEs, allowing customers to instantly collect money directly from their bank account. Customers will be able to enjoy key benefits including increased user experience, lower costs, greater speed, boosted security and faster conversion. More and more Consumers choose this option and it is growing some 40% month-on-month in the UK. 

The new partnership is expected to support the shift towards an embedded financial future, making it as simple as possible for innovators to create new products which people find comfortable to adopt and use on a long term basis. 

Both companies will also build new joint functionalities that provide mutual customers with products and features to leverage the full spectrum of Open Banking and Embedded Finance benefits.