November 21, 2023
Plaid’s Commitment to the European Open Finance Opportunity
At Plaid, our vision for the future of finance has always been global. We fundamentally believe that the world is increasingly connected, and people everywhere benefit from a global financial services industry that supports their ability to thrive. We see Europe as one of the most forward-thinking open finance markets, with regulators focused on supporting the innovation that has thrived in the region for the past decade thanks to PSD2 (Revised Payment Services Directive). Currently, we’re encouraged by the continued momentum reflected in the PSD3 draft, and what we are seeing in the Financial Data access draft regulation.
It's clear the European technology sector has demonstrated strong commitment to maintaining a leading position in the global fintech industry. Reports estimate Europe makes up 27% of the global cumulative valuation of the fintech industry, and in the UK alone, there is a thriving ecosystem of 2,500 fintech companies. By receiving 20% of all VC investments, fintech is the largest VC investment category in Europe, a higher percentage than in Asia and even the U.S.
In 2019, we set out to empower our customers who wanted to expand to the U.K. and Europe, as well as support the thriving fintech ecosystem that was growing in the region. We established offices in London and Amsterdam – serving as a transatlantic “bridge” into both markets for ambitious fintechs. Our commitment to the region has remained unchanged - today we support 18 countries in Europe and our unique background and tech-first solution meets needs across many use cases, including fintech, lending, and payments.
Today, we’re excited to announce that Brian Dammeir has joined Plaid to spearhead our growth in the region as our new Head of Europe, partnering with customers to bring innovative products to market that drive better financial outcomes for consumers. Brian comes with a strong product background, having held several roles at Adyen, including Head of Product, President of North America, and Global Head of Unified Commerce, driving Adyen’s global expansion in payments, platforms and broader financial products. Brian’s rich experiences in the financial technology sector span many geographies, including Europe, APAC, and the Americas. This is the type of global lens that will be critical as we pursue our mission to unlock financial freedom for everyone.
As we continue to grow the business and expand product offerings, we’re encouraged by the traction and opportunities we’re seeing across Europe:
Payments: In 2023, Plaid’s payments volume in the UK grew 90%. This is possible through partnerships, including the ones we have with Checkout.com, and customers like Moneybox, Kraken, and Paysend.
Lending: Companies like Canopy, Wayflyer and YouLend rely on Plaid to pull in a complete picture of a consumers’ financial life, instead of a narrow set of data points that would potentially limit their ability to access credit. The consumer value proposition is so obvious that the majority of Plaid’s biggest customers are leveraging our technology for this use case, including Klarna.
International expansion: Plaid is a unique provider able to support companies offering financial products with expansion across the Atlantic - whether that’s coming from the U.S. into Europe, like Public, or from Europe into the U.S., like Monzo.
Open Banking → Open Finance: The evolution of open finance – and the formation of PSD3 – will play an integral role in helping consumers enjoy more choice and better outcomes.
At Plaid, we benefit from having international perspectives and believe that the fabric of our technology is better as a result. Our growing team is steadfast in their commitment to the U.K. and Europe, and dedicated to helping our customers pursue the opportunities that exist for companies who deliver great outcomes for the consumers they serve.