Plaid, a fintech company based in the US, announced yesterday that it has partnered with the American financial services firm, Square to give merchants in the US a better experience regarding ACH payments.
According to the official announcement, the new collaboration will allow US merchants to easily process ACH payments without the need of holding sensitive bank information. Plaid mentioned that merchants will be able to accept ACH payments via Square invoices.
Square will use a tokenized check system through Plaid to enable customers to connect securely to their bank accounts for payments. Plaid highlighted the importance of a secure and transparent process for businesses to collect payments of high-value orders.
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Commenting on the latest partnership with Plaid, Dennis Jarosch, Head of Payment Platform at Square, said: “Payment flexibility, security and transparency are core to Square’s Payment Platform. By offering ACH payments, we can help businesses process large transactions online at a low cost without worrying about bank authentication, compliance or any managed payment complexities. We’re excited to offer ACH as one of many ways that businesses get paid fast and securely with Square.”
Square is one of the leading financial services and digital payment companies in the US. Founded in 2009 by Jack Dorsey, the company accelerated its accumulation of Bitcoin in 2021.
Through the new partnership between Square and Plaid, developers can enable ACH payments through Square Web Payments SDK. Users can proceed with quicker and safer ACH payments without worrying about complexities in the payment system or bank authentications.
“For many e-commerce businesses, ACH payments debited directly from bank accounts provide a lower-cost, more accessible alternative to credit cards. And while cards expire and go missing, account and routing numbers used for ACH payments are more permanent, leaving less room for interruption and error. Despite the benefits for merchants, customer preference and convenience have helped cards solidify their position as the recent default in e-commerce payments,” Michael Epstein, Partnerships Manager at Plaid mentioned in the company’s official blog.