Cross River and Plaid Unveil Faster Multi-Rail Bank Payments Solutions

July 27, 2023 at 08:30 AM EDT

Instant Payouts on Plaid Transfer, powered by Cross River, will enable real-time distributions for investing, lending, insurance, payroll and more

Companies providing a turnkey solution for instant payments across multiple payment rails to U.S. companies of all sizes

Cross River Bank (“Cross River”), a technology infrastructure provider that offers embedded financial solutions, today announced the expansion of its partnership with Plaid, a data network powering the digital financial ecosystem, to deliver multi-rail payment solutions to U.S. businesses and their customers.

“Expanding our relationship with Plaid to power their real-time offerings is a significant milestone in our commitment to driving financial innovation, and ensuring faster, secure, and seamless payment experiences,” said Adam Goller, Head of Fintech Banking at Cross River. “By combining the strengths of our proprietary banking core and advanced API technology with Plaid’s expertise in financial technology tools, millions of Plaid customers will have access to their money when and where they need it.”

As the world becomes increasingly connected and dependent upon speed, businesses and consumers alike expect real-time, on-demand payment services. Plaid chose Cross River as the first financial institution to support Plaid’s real-time solutions due to the companies’ on-going relationship and Cross River’s proprietary API technology and innovative solutions. Cross River’s proprietary, API-based core creates a direct, efficient and streamlined connection to multiple payment networks – ACH, RTP^®, and soon the FedNow^SM Service.

“Real-time payments can deliver significant efficiency and cost benefits to businesses and help them deliver amazing new experiences for consumers by delivering money when and where they need it,” said John Anderson, Head of Payments at Plaid. “We are excited to expand our relationship with Cross River to deliver innovative real-time payment solutions on top of its API-based processing core.”

The first real-time offering from the partnership was Instant Payouts on Plaid Transfer, a real-time, multi-rail payout solution to send and settle funds instantly. Plaid Transfer manages bank-linked transfers and payments, allowing businesses to obtain payment authorization, analyze risk, and move money - all within a single API. It also provides intelligence on instant payout eligibility. If an account is not eligible for instant payouts, companies can seamlessly route the transaction to ACH without surfacing complexity to their customers.

Payouts via traditional banking methods take days to settle and can be a major disruption to businesses’ and consumer’s financial well-being. A 2022 AFP Digital Payments Survey, found 92 percent of global organizations have been positively impacted by faster payments and 70 percent of consumers report satisfaction from faster payments according to the Federal Reserve. With the current macroeconomic environment, it’s more important than ever to have access to capital when and where it’s needed. Instant Payouts via Plaid Transfer, powered by Cross River, is a game-changing technology that benefits businesses and verticals such as personal lending, marketplaces, insurance, brokerages and digital investment platforms.

To learn more, Cross River and Plaid are hosting a webinar titled: “A New Era of Faster Payments for Businesses and Consumers,” on August 3rd at 10 am PT. Registration information is available here.

About Plaid

Plaid is a data network that powers the tools millions of people rely on to live a healthier financial life. Nearly 1 in 3 US consumers with a bank account have connected via the Plaid network, which covers more than 12,000 financial institutions across the US, Canada, UK and Europe, and connects to an ecosystem of more than 8,000 leading digital finance apps and services. Headquartered in San Francisco, the company was founded in 2013 by Zach Perret and William Hockey.

About Cross River

Cross River provides technology infrastructure powering the future of financial services. Leveraging its proprietary real-time banking core, Cross River delivers innovative and scalable embedded payments, cards, and lending solutions to millions of consumers and businesses. Cross River is backed by leading investors and serves the world’s most essential fintech and technology companies. Together with its partners, Cross River is reshaping global finance and financial inclusion. Member FDIC. Find out more at www.crossriver.com.