Fintech firm Circle has integrated with Plaid, a data transfer network that powers fintech and digital financial tools, to enhance the verification process for ACH payments.
The integration will also enable customers to convert money from their bank accounts to USD Coin (USDC).
Following the integration, Circle has enabled ACH payment and payouts for several customers including Dharma, Linus, and Lemonade Finance.
The end-users of these customers will be now able to directly connect their bank accounts, eliminating the need to share details with Circle.
Circle chief strategy officer and head of Global Policy Dante Disparte said: “Seamless, trusted payment infrastructure is essential for enabling global economic commerce on the internet and we’re proud Plaid’s network will help customers experience how automation can power frictionless value exchange.”
Circle’s Payments and Payouts APIs will allow incoming ACH payments to be automatically settled as USDC in Circle accounts. Payouts facilitate the automatic conversion of USDC into ACH transfers.
Plaid head of Revenue and Partnerships Paul Williamson said: “ACH payments are increasingly critical as digital finance becomes the ‘new normal’. However, historical processes and infrastructure don’t properly support the increase in money flowing online between accounts.
“Innovative companies like Circle offer easier ACH processing combined with the power of Plaid’s instant Auth and account verification for better money movement experiences.”
Circle recently partnered with Mastercard to enable individuals and businesses to utilise USDC to facilitate crypto-to-fiat conversions.
In May this year, crypto exchange FTX signed a global partnership with Circle for payment support and USDC infrastructure.
The same month, Circle raised $440m in financing to support its growth, organisational development, and market expansion.