SAN FRANCISCO—Financial services fintech Plaid is expanding to provide real-time bank transfers.
The updated service allows businesses to disburse loan payments, insurance payouts or wages instantly, Forbes reported.
Plaid’s Transfer service helps businesses, mostly other fintechs, move funds between bank accounts.
The product now utilizes the Real Time Payments (RTP) network, a five-year-old money movement platform owned by a consortium of large U.S. banks, allowing for instant bank transfers, Forbes explained.
“Before adding support for RTP, all transactions occurred using the dominant, decades-old system for bank-to-bank fund transfers in America, the Automated Clearing House. ACH transfers typically take one to three business days, unless users pay a fee for a same or next day transaction. In addition to disbursements, a transfer can be used to fund new accounts,” Forbes said.