Plaid Brings Open-Banking Technology to Western Union in Europe

Open-banking technology provider Plaid Inc. is pairing-up with The Western Union Co. to bring its account-verification services to the wire-transfer giant’s European customers.

Under the so-called collaboration San Francisco-based Plaid announced Thursday, Western Union will be able to tap Plaid’s open-banking system for account verification, thereby simplifying remittances and digital payments.

“Plaid’s robust open-banking infrastructure streamlines the process of sending and receiving money across borders, ensuring that funds reach their destination swiftly, without any hassle or delays,” Brian Dammeir, Plaid’s head of Europe, said in a blog post. “Account verification is crucial, but it can be a time-consuming process that slows down money transfers. Western Union customers will now benefit from fast, convenient, open banking-powered account verification from Plaid. Users can be confident knowing their money is going to the right place, every time.”

The higher personal and financial data security resulting from account verification will enable Western Union to offer a “significant increase in transaction thresholds,” Dammeir said. “This means their customers can send larger amounts of money across borders with ease,” his post says. “Whether they’re a business owner managing international transactions or an individual supporting loved ones abroad, these expanded transfer limits offer greater flexibility and convenience.”

Bart Stencel, vice president of omnichannel marketing Europe at Denver-based Western Union, said in a statement that the Plaid deal represents “a new, easier way of doing money transfers with us.”

“This collaboration shows how we at Western Union invest in innovation to provide our customers with the flexibility and trust they need,” Stencel said.

Dammeir also said the collaboration will enhance Western Union’s operational efficiency, resulting in time savings and reduced manual effort. A Plaid spokesperson could not be reached Friday to say in how many European countries the Plaid-enhanced Western Union services will be available.

In the U.S., the big payment processor Fiserv Inc. struck a deal last fall under which Plaid will allow consumers who use any of Fiserv’s 3,000 client banks to share financial information with third-party apps and services.