Financial technology platform Adyen in partnership with digital finance firm Plaid plans to introduce its pay-by-bank services in North America in early 2024.

The partnership builds on Adyen’s embedded financial services along with the company’s investments in the region including a US Branch License and local tech hubs.

Adyen North America president Davi Strazza said: “Our complementary offerings together form an unparalleled Pay-by-Bank experience for businesses and end-consumers alike.

“This alternative payment method not only meets our customers’ demands for continually expanded payment methods – but in the process also significantly reduces costs across the payment chain for them.”

According to Adyen, the pay-by-bank solution adds to over 150 different payment methods offered by the company.

The new service will provide businesses with seamless and optimised solutions for customers and cost-efficiency in their back-end operations.

Besides, the solution will deliver enhanced security and fraud protection measures to businesses, helping them to reduce chargebacks and nearly eliminate transaction failures.

Furthermore, the payment method will facilitate enterprise merchants to process larger payment volumes.

Plaid chief operating officer Eric Sager said: “Plaid is already trusted by about 1 in 3 Americans with a bank account and provides a secure and seamless way to connect financial accounts for bank-linked payments.

“In partnership with Adyen, we’ll bring pay-by-bank and marketplace onboarding to more companies in North America, helping them lower payment cost, increase conversion, and reduce both fraud and payment losses.”

Last month, Plaid joined forces with payments solutions provider Fiserv to enable secure and reliable data sharing via application programming interfaces (APIs) for financial institutions and consumers.

The collaboration was expected to benefit customers who have accounts with approximately 3,000 banks and credit unions hosted by Fiserv.