Plaid, Ansa Pay-By-Bank Partnership Targets Merchants and Restaurants

Ansa and Plaid are teaming up to lower payment costs for merchants and restaurants.

The partnership between the digital wallet provider and the data network is designed to provide these businesses — particularly coffeeshops and quick-service eateries — with digital wallets to power “high-converting pay by bank capabilities for merchants,” the companies said in a Tuesday (Oct. 8) news release.

As the release noted, merchants with low order value that wish to adopt automated clearinghouse (ACH) payments have typically been left out because of limited accessibility and operational complexities.

“This partnership with Plaid is about meeting our customers where they are,” said Sophia Goldberg, Ansa’s co-founder and CEO. “For coffee shops and quick-serve restaurants, in-store payment solutions are incredibly valuable, where a $4 latte purchase can incur fees of up to 12.5% — placing a massive burden on businesses.”

Bringing ACH funding to their digital wallets, Goldberg added, offers these businesses more opportunities for cost savings and customer engagement.

“Rather than a brand processing a $5 credit card, they can process a $25 wallet load on pay by bank and add a $5 incentive, driving cash flow and revenue for the brand, and creating even deeper loyalty with their customers,” she said.

Also Tuesday, Plaid launched a product designed to help businesses allow their customers to pay bills directly from a bank account.

Plaid Pay by Bank for Bill Pay is designed to offer consumers a more seamless, cost-effective and secure way to pay bills, and to let businesses benefit from lower processing costs and fewer returns for all types of recurring payments.

“Every company is looking to grow and lower costs,” Brian Dammeir, general manager and head of payments at Plaid, said in a blog post. “Getting more customers to pay directly with their bank account for more types of payments is a clear way to do both. In fact, when we combine a great user experience with optimal verification and intelligent risk assessment, Pay by Bank for Bill Pay can deliver a more reliable experience than cards.”

According to the PYMNTS Intelligence and AWS collaboration, “Tracking the Digital Payments Takeover: Consumer Familiarity Controls Account-to-Account Payment Growth,” 36% of American consumers use pay by bank, also known as account-to-account (A2A) payments.

The report found that consumers most often point to convenience, ease of use and fast availability of funds as their reasons for using A2A payments.