The case for pay by bank in recurring billing

The adoption of pay by bank in recurring billing is on the rise, with US consumers paying $9.42T of their bills via ACH bank transfers in 2023, a 6.9% increase from 2022. This method saves companies upwards of 40% on payment processing fees compared to cards for many use cases. However, the adoption rates could be significantly higher if more companies offered their customers the better user experience that Plaid provides. Companies should consider pay by bank as the primary option when setting up customer bill payments due to reduced costs, less churn, and established consumer behavior. Challenges such as user experience, fraud, returns, and limited retries can be overcome with solutions like Plaid Link for easy account connection and Plaid Signal for real-time risk scoring. Overall, pay by bank offers significant savings opportunities for organizations while providing a convenient and secure user experience.

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