The partnership between Plaid and Cross River enables customers “to have access to their money when and where they need it.”

Cross River Bank, a provider of technology infrastructure and embedded financial solutions, has announced an extension of its partnership with Plaid, a data network that supports the digital financial ecosystem. Together, they aim to offer multi-rail payment solutions to businesses and customers in the United States.

Adam Goller, the Head of Fintech Banking at Cross River, emphasized the significance of this collaboration in driving financial innovation and ensuring faster, secure, and seamless payment experiences. He highlighted the combination of Cross River’s proprietary banking core and advanced API technology with Plaid’s expertise in financial technology tools, which will provide millions of Plaid customers with access to their funds whenever they need them. (Yahoo Finance)

In today’s interconnected world, both businesses and consumers have come to expect real-time, on-demand payment services. Plaid chose Cross River as its first financial institution to support real-time solutions due to their ongoing relationship and Cross River’s proprietary API technology and innovative solutions. Cross River’s API-based core enables efficient and direct connections to multiple payment networks, including ACH, RTP®, and soon the FedNowSM Service.

John Anderson, Head of Payments at Plaid, explained that real-time payments can offer significant efficiency and cost benefits to businesses, enabling them to provide excellent experiences to their customers by delivering funds promptly and precisely. Plaid is excited about expanding its partnership with Cross River to deliver innovative real-time payment solutions built on top of Cross River’s API-based processing core.

The initial real-time offering resulting from this partnership is Instant Payouts on Plaid Transfer, a multi-rail payout solution that allows businesses to send and settle funds instantly. Plaid Transfer manages bank-linked transfers and payments, streamlining the process within a single API. It also provides information on instant payout eligibility. If an account isn’t eligible for instant payouts, the transaction can be seamlessly routed to ACH without complicating the experience for customers.

Traditional banking methods for payouts often take days to settle, which can be disruptive to both businesses and consumers. Studies have shown that faster payments have had a positive impact on global organizations and have left consumers satisfied. In the current economic environment, access to capital when and where it’s needed is more crucial than ever. Instant Payouts via Plaid Transfer, powered by Cross River, is a game-changing technology that benefits various industries, including personal lending, marketplaces, insurance, brokerages, and digital investment platforms.

Related Story:  American Express And Plaid Announce API-Based Integration

Photo by Kenny Eliason on Unsplash