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December 05, 2024

Fintech Without Borders: Creating Seamless Financial Experiences Across the Atlantic

Zak Lambert
Europe Product Lead, Plaid

At Plaid, we’re seeing a renewed interest in businesses expanding into Europe from the US and from the US into Europe, as demand for online finance continues to grow. Nearly nine in ten consumers use fintech tools, according to Plaid’s The Fintech Effect report, and in Europe, 75% of consumers rely on digital banking today (Statista). To meet this growing reliance on digital-first financial solutions, fintech companies are expanding their reach across the Atlantic. With Plaid’s global connectivity and expertise, companies like Affirm and Square (Block) are creating seamless, personalised financial experiences that resonate with consumers in both the US and Europe.

Open Banking Growth Is Reinforced by Established Regulatory Frameworks

The global Open Banking market opportunity is projected to grow by nearly 25% annually and reach USD $204 billion by 2033. In 2023, Europe represented 38% of the total Open Banking market, with revenues reaching USD $9.5 billion (Markets.US, Oct. 2024).

The strong adoption of services based on Open Banking, combined with established regulatory frameworks, is reinforcing Open Banking opportunities. In the US, the CFPB's recent 1033 rule mandates improved data access and empowers consumers to control their data for smarter financial decisions. Europe’s upcoming PSD3 builds upon PSD2, further enabling third-party access to financial data and creating opportunities for services in payments, lending, and financial wellness. This progress is encouraging innovation, more competition, and greater choice for consumers.

Innovating Across Borders

As fintech becomes an integral part of everyday financial life, businesses are looking to deliver the simplicity, speed, and trust consumers expect. A 2023 Deloitte study found that 70% of consumers feel comfortable sharing financial data with trusted apps, reflecting a significant shift in user confidence. By expanding across borders, fintech companies are tapping into this trust and enabling consumers to manage their finances effortlessly, no matter where they are.

Plaid powers the cross-border ambitions of leading fintech companies, enabling them to seamlessly expand into new markets. Examples include:

  • Affirm:  Affirm delivers flexible payment options to consumers in the US, Canada, and the UK. Affirm works with Plaid to securely connect to consumers' bank accounts, supporting Affirm’s efforts to responsibly extend access to credit to as many people as possible. Affirm is a form of credit.

  • YouLend: European lender YouLend relies on Plaid to expand into the US market, helping small and medium-sized businesses get access capital. With real-time financial data, YouLend streamlines credit assessments and offers better loan terms globally.

  • Square (Block): Square uses Plaid to support its international growth, ensuring merchants in the US and Europe can manage their finances and process payments with ease.

  • FreshBooks: FreshBooks relies on Plaid to sync bank accounts for its accounting software, empowering small businesses across the Atlantic to save time on financial management while staying compliant.

Scaling Seamlessly with Plaid

Expanding into new markets requires navigating diverse consumer preferences, payment methods, and regulations. Plaid simplifies this process with:

  • Global Connectivity: The Plaid network links to thousands of financial institutions across regions, enabling seamless financial interactions for nearly all consumers. In Europe, customers can connect to nearly 2,000 institutions in 18 markets.

  • Localised Support: Plaid’s platform is built to handle the nuances of individual markets, ensuring compliance and ease of use.

  • Frictionless User Experiences: Businesses can deliver intuitive, secure experiences that build trust and drive adoption worldwide.

Fintech is now embedded in everyday financial life, and companies embracing this global reality are redefining what’s possible in financial services. With Plaid’s infrastructure and expertise, fintech leaders like Affirm, Square, and YouLend are scaling their offerings to meet the needs of consumers across the US and Europe. Whether your focus is payments, lending, or financial management, Plaid helps you build the future of global finance—without borders.

We are proud to support a growing list of customers in Europe and the US as they expand domestically and internationally, and we continue to invest in our vision for a global financial future.