Canadian fintech Nuvei has extended its partnership with data network Plaid to include new regions and additional verticals in ecommerce.
Nuvei and Plaid also confirmed their intention to scale the partnership globally before the end of 2023.
Following the expansion of the existing partnership, Nuvei and Plaid will be able to support a wider range of businesses with accepting bank-based payments for multiple use cases, including recurring payments and payouts.
Among the additional verticals they will serve in the ecommerce space are utilities and B2B.
Philip Fayer, chief executive officer and chair of Nuvei, said: “We want to support merchants with payment solutions with lower processing costs and quicker access to funds.
“Consumers are increasingly turning to online bank transfer payments, but their user experience has often been poor.”
He added that Nuvei’s ‘Instant Bank Transfer’ removes the barriers to adoption, “democratizing this payment method for consumers and offering merchants a genuine revenue-driving alternative to card payments”.
According to analysis by Nuvei, bank-based payments are already the third most popular online payment method in the US, behind credit and debit cards, and 23% of all US consumers are considering using bank-based payments for general ecommerce payments in the next 12 months.
This rises to 44% among US consumers that have chosen bank-based payments for any type of transaction previously.
However, adoption has been slowed due to concerns around security, with 35% of consumers expressing security concerns as a key barrier to bank-based payment adoption, according to Nuvei.
“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.”
The companies’ plans to scale the partnership globally is based on Nuvei’s global reach, which includes local acquiring in 47 markets, combined with the Plaid network, covering 12,000 financial institutions across the US, Canada, the UK and Europe.