California-based Silicon Valley Bank (SVB) has partnered with Open Banking platform Plaid to offer tokenised payment solutions, making it the first bank to provide ACH account token integration with Plaid.
Through the partnership, SVB said that clients will be able to instantly authenticate bank account information with Plaid and securely generate payments via a tokenised payment solution.
The joint solution connects Plaid’s instant account verification and SVB’s ACH API functionality through a tokenised system, thereby minimising the handling of sensitive bank data, and also enables joint clients to be compliant with Nacha requirements related to fraud detection standards for WEB debits and data security.
Shaleen Prakash, head of digital channels and segment operating solutions at SVB, said it was an expansion of the bank’s already “solid partnership” with Plaid.
“The historical infrastructure for opening new accounts and moving money has been cumbersome for both developers building the experiences and the individuals using them,” Paul Williamson, head of revenue and partnerships at Plaid, added.
“Digital finance is the ‘new normal’ and clients are increasingly looking for secure, integrated solutions with a fast speed-to-market from trusted service providers, versus having to stitch together a solution from multiple providers.
“With Silicon Valley Bank, thousands of fintech innovators now have access to an integrated payment processing solution that combines the power of SVB and Plaid to deliver seamless, convenient digital finance experiences.”
Plaid secured additional Series D funding from JP Morgan Private Capital Growth Equity Partners and existing investor Amex Ventures in August, topping up the initial $425 million raised as part of the round.