Skip to content

Payment Industry Keeps Close Eye on Open Banking Announcements

Find the payments services your business needs to stay up-to-date with the latest payments industry trends, like open banking.


Thursday, November 4th, 2021

All eyes in the payments industry have shifted to new developments in open banking. What is open banking? If you’re unfamiliar, open banking is a practice that allows banks and third-party financial service providers, like budgeting apps and cash flow management tools, to secure access to banking and other financial data. 

Nuvei and Circle Make Big Announcements 

This method and its potential have been getting a lot of attention recently as it expands rapidly. Open banking for instant funding is picking up speed like never seen before, likely due to the shifting needs of consumers and business owners amid the pandemic. Recent announcements from payments processors Nuvei Corp. and Circle Internet Financial Corp have brought relief to the industry.

Montreal-based Nuvei just shared that consumers can now move money instantly from their bank accounts to digital wallets, payment cards, or other accounts. To make this possible, the company is working with open-banking firm Plaid Inc. to verify bank accounts for the transfer. This new capability has been named Verified Withdrawals. It simply adds to an existing feature that allows gamblers to deposit winnings instantly, painlessly into their bank accounts.

The best part? According to Nuvei, Verified Withdrawal involves a solid verification process through Plaid. The know-your-customer procedure that takes place before the withdrawal automatically ties players to their bank account data. Plaid’s involvement in open banking doesn’t stop there.

Cryptocurrency platform Circle Internet Finanacial Inc. also recently announced an integration with the company. This move will allow them to enable account verification for automated clearing house transfers. (The ACH Network processes electronic financial transactions, like direct deposit and direct payments.) Through this integration, users of certain services like Lemonade Finance can seamlessly link bank accounts directly with Circle – all without revealing account details.

“ACH payments are increasingly critical as digital finance becomes the ‘new normal.’ However, historical processes and infrastructure don’t properly support the increase in money flowing online between accounts,” explained Paul Williamson, head of revenue and partnerships at Plaid, in a statement. 

“Innovative companies like Circle offer easier ACH processing combined with the power of Plaid’s instant Auth and account verification for better money-movement experiences.”

Importance of Open-Banking Networks Keeps Growing

The growing importance of open-banking networks and their place was highlighted earlier this year when certain industry giants made big moves. Visa Inc., for example, agreed to acquire Tink AB, a Stockholm-based company with connections to 3,400 financial institutions throughout Europe. Meanwhile, last year, Mastercard acquired Finicity Corp., a Plaid rival, in an important $825 million deal. As all of these major players grab at opportunities, it would be wise for even the smallest business owner to take notice.

Open banking will lead to new opportunities and demands on businesses for years to come. This trend of immediate funds and contactless payments is guaranteed to continue, driven by the unprecedented changes of the pandemic. To keep up with the latest industry news, find processors that understand trends and keep your customers’ payment options up-to-speed, be sure to check in with the experts at Best Payment Providers.

Browse countless provider reviews and receive the latest industry news. If you’re in need of a provider that understands the needs and demands of today’s customers, find the provider that has the reputation your business deserves. Select your industry, and quickly find a list of processors who offer the lowest rates, fast approvals, and more.