MX, a startup that connects banks and fintechs, has named a PayPal veteran as CEO.

MX, a startup competing with Plaid has named PayPal executive Jim Magats as its new CEO, according to CNBC.

According to MX founder Ryan Caldwell, Magats, an up to two-decade PayPal veteran will begin at the Utah-based company in mid-August.

MX, like competitors Plaid and Yodlee, has benefited from and contributed to the growth of the US fintech ecosystem in recent years.

To help banks and fintechs securely "talk" to each other in terms of transactions and account data, the company uses software known as API.

Magats takes over at an interesting time: he succeeds Shane Evans, who was named interim CEO in January as the company prepared for an IPO or possible sale.

MX, which was valued at $1.9 billion in a funding round last year, was looking for a transaction worth at least $5 billion.

However, the IPO market has largely closed since then due to plunging equity prices, particularly for formerly high-flying technology names.