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January 18, 2023

On the web

PayJunction Partners With Plaid to Extend Seamless A2A Money Transfers

EIN News

PayJunction, a leading developer of payment processing technology, announced an integration with Plaid, a consumer-permissioned network powering the digital financial ecosystem to simplify bank payments, enabling PayJunction customers and partners to deliver a better pay-by-bank experience. Integrating Plaid's secure account-to-account (A2A) bank connectivity technology with PayJunction's payment gateway will allow B2B and B2C businesses to easily extend to their customers a simple way to pay for goods and services via direct bank transfer, whether online or via invoicing.

December 8, 2022

On the wires

Airwallex Partners With Plaid to Facilitate Seamless Payment Experience

Businesswire

“Global fintech Airwallex today announced it has partnered with Plaid, the data network powering the digital financial ecosystem, to offer an integrated solution that can streamline Automated Clearing House (ACH) payments, and enable a more seamless, safe and cost-efficient way to authorize debits from their bank accounts and fund their Airwallex accounts. With the Plaid integration, Airwallex customers will also be able to instantly and securely verify their bank accounts in the United States. These verifications are used by Airwallex’s direct debit capabilities, either for adding funds to their Airwallex wallet from an external bank account, or for merchants to accept payments from customers within Airwallex’s payment acceptance business. “We are excited to be partnering with Plaid, and to be able to offer a flexible, secure and transparent payment option for our joint customers in the U.S.,” said Ravi Adusumilli, Global Head of Partnerships and General Manager, Americas at Airwallex. “Through this integration, customers can authenticate the payers’ bank accounts without the complexity and time that usually comes with traditional ACH processing. Enabling a more seamless customer experience like we are with Plaid is exactly why Airwallex was built. We are providing easier access to a global financial infrastructure, and can in turn, empower businesses to operate anytime, anywhere.””

October 25, 2022

On the web

Connecting Crypto Wallets is Scary. Plaid Wants to Change That.

Protocol

“More and more fintech app users have gotten used to seeing Plaid’s logo pop up when they try to connect their bank accounts. Now Plaid is trying to play a similar role for crypto applications. The company is releasing a product for crypto developers Thursday that makes it easier for them to connect consumers’ crypto wallets to their apps. Security is an ongoing challenge for crypto, and crypto wallets in particular are a vector of attack. A number of hacking and social engineering attacks have occurred that find various ways to connect to the wallets of unsuspecting users and drain their tokens. Plaid’s new product is a way to address those fears, but it also feeds into an ongoing debate over just how decentralized crypto can be while addressing consumers’ needs for secure, easy-to-use apps.”

August 10, 2022

On the web

Wise and Plaid Launch Open Finance Agreement to Enable Secure Financial Connectivity

Wise Newsroom

“Wise, the global technology company building the best way to move money around the world, and Plaid, the API-first data network powering the digital financial ecosystem, today announced an open finance agreement to provide customers a seamless way to move money across different financial institutions. The integration is based on Plaid’s industry-aligned open finance solution Core Exchange and provides Wise customers, totaling 13 million worldwide, with the ability to move money conveniently and securely across their own accounts. Customers simply connect their Wise USD local account details in their app of choice and use Wise with thousands of Plaid-powered apps and services. The Plaid network covers more than 6,000 apps including 9 of the top 10 most downloaded fintech apps in the Android + App Store (as of May 2022) such as Venmo, Truebill, Chime, and more.”

July 27, 2022

On the web

Judge Approves Settlement Ordering Plaid to Pay $58 Million for Selling Consumer Data

Courthouse News Service

“A federal court judge on Wednesday approved banking app Plaid’s $58 million privacy class action settlement after consumers claimed the company had harvested and sold their financial data without consent. U.S. Magistrate Judge Donna Ryu’s order found that 11 plaintiffs from five lawsuits, led by James Cottle, won payment for all impacted customers whose data was sold by the tech startup Plaid using their banking login credentials. Plaid provides bank “linking” and verification services for fintech apps that consumers use to send and receive money from financial accounts such as Venmo, Coinbase, Cash App and Stripe.  Cottle’s original complaint said when he signed up for a Venmo account in 2019, he did not know he was sharing his banking credentials with Plaid. He said the company hid the fact that it was accessing his sensitive financial information by prompting him to login to his bank to set up a Venmo account.  The case was combined with four other lawsuits brought in May, June and July 2020. Other plaintiffs said Plaid designed login screens in its interface to look like screens used by individual financial institutions, but failed to disclose to users that they were not interfacing with their bank.”

June 15, 2022

On the web

RBC and Plaid Announce Agreement to Bolster Client Security and Increase Connection to Financial Services Apps

PR Newswire

“During a time when Canadians’ appetite for digital services continues to increase, RBC and Plaid are pleased to announce a new data access agreement that will empower RBC clients with the option to share their financial data securely via a direct application programming interface (API) with the thousands of apps and services of their choice on the Plaid data network. This new API connection delivers a seamless user experience and eliminates the reliance on credential sharing, resulting in increased security and better protection of clients’ privacy.”

June 1, 2022

On the web

Plaid Teams Up with Truework to Launch Income Verification Solution

The Financial Analyst

“Income and employment verification company Truework has partnered with Plaid to help the firm launch its new Plaid Income product. Plaid Income will bring greater accuracy, security, and speed to the loan application process. Prospective borrowers will be able to share income and employment data digitally and instantly with their approved lenders. Plaid Income will provide faster approvals for loan applicants while giving lenders greater confidence that they are lending the right amounts, to the right people, at the most appropriate interest rate.”

August 9, 2021

On the web

Fintech Firm Plaid Agrees to $58 Mln Deal to End Privacy Case

Reuters

“Plaid Inc has agreed to pay $58 million to resolve consumers’ claims that the financial technology company obtained and used bank account credentials and financial information without consent. San Francisco-based Plaid also agreed in the nationwide settlement to change certain business practices, according to filings Thursday in California federal court made by lawyers for consumers.”

May 10, 2021

On the wires

Improving the Payments Experience in the UK | Plaid

“One year ago, we launched Payment Initiation in the UK, which included a new Payment Initiation experience in Plaid Link. Link is the fastest way to get started. It’s optimised for a seamless experience, and ensures your user experience benefits from the full Plaid platform. Since then, we’ve focused on improving the user experience for making payments. We introduced QR code authentication to remove friction from the Plaid account linking desktop experience, enabling people to authenticate—and thus make payments—quickly and securely.”

May 4, 2021

On the web

Judge Narrows Privacy Case Against Fintech Firm Plaid

Reuters

“Plaid Inc must face some claims in a consolidated proposed class action that accuses the financial technology company of obtaining and using consumers’ banking account credentials and financial information without consent. U.S. Magistrate Judge Donna Ryu in Oakland on Friday found the plaintiffs sufficiently allege invasion of privacy, violation of California’s anti-phishing law and other claims.”

April 8, 2021

On the web

Plaid Valuation Tops $13 Billion in First Funding After a Scrapped $5.3 Billion Merger With Visa

CNBC

“Fintech company Plaid raised a new round of capital that nearly triples its valuation a few months after a deal to be bought by Visa fell apart. The company announced a $425 million Series D funding round on Wednesday, led by Altimeter Capital with participation from new investors, Silver Lake and Ribbit Capital. Earlier investors Andreessen Horowitz, Index Ventures, Kleiner Perkins and New Enterprise Associates also added to the round.”

April 5, 2021

On the web

Plaid Is Said Close to Financing at About $13 Billion Valuation

Bloomberg

“Financial-technology firm Plaid Inc. is close to a new round of funding at a valuation of about $13 billion, almost three months after scrapping its sale to Visa Inc., according to people familiar with the matter. The funding round will be led by Altimeter Capital , said the people, who asked not to be identified because the information was private.    Many of its existing investors are expected to participate in the latest round that could raise hundreds of millions of dollars, the people said. Investors with significant stakes include NEA, Spark Capital, Index Ventures and Kleiner Perkins.”

January 19, 2021

On the web

Plaid Plans to Double Europe Staff After Visa Deal Falls Through

Bloomberg

“Financial-technology firm Plaid Inc. is planning to nearly double its size in Europe, focusing on expanding the business’s global reach after Visa Inc. ’s $5.3 billion acquisition fell through . Plaid will have about 80 employees in its London and Amsterdam offices by the end of 2021, up from 40 to 50 currently, Keith Grose, head of the San Francisco-based company’s international business, said in an interview.”

October 27, 2020

On the web

Visa’s Planned Purchase of Plaid Faces Antitrust Scrutiny at the Justice Department

Wall Street Journal (pay wall)

Visa Inc.’s $5.3 billion deal to buy a key player in the financial-technology space is in jeopardy because of antitrust concerns, according to people familiar with the matter. The Justice Department could decide soon whether it will sue to block Visa’s acquisition of Plaid Inc., a firm that provides the technological infrastructure underpinning an array of next-generation financial apps . After spending the better part of the year scrutinizing the deal, the department is concerned it could limit nascent competition in the payments sector, people familiar with the matter said. The Justice Department has been making preparations for potential litigation, including lining up potential witnesses for a trial, some of the people said. No final decision has been made. Representatives of Visa, Plaid and the Justice Department declined to comment.”

April 6, 2020

On the web

Plaid Gives Lenders Access to Small Business Payroll Data to Speed Emergency Loan Approval

CNBC

“Start-up Plaid is looking to solve a pain point in the emergency loan process: Access to payroll data.  Small businesses looking to survive the coronavirus slowdown are rushing to apply for emergency government loans. But as a part of that process, they need to download their payroll data and share it with their bank, who then needs to verify and process the information and application. The process can take days or weeks, and is often done manually, according to Plaid.”

July 19, 2019

On the web

Plaid Introduces Liabilities to Create Debt-tracking Apps, Starting With Student Loans

TechCrunch

“Plaid is introducing a new product called Liabilities to help developers build applications around debt. For starters, Plaid is taking aim at a big problem in the U.S. — student loan debt . The product will expand to cover other kinds of debt over time, but the company wanted to start with student loans because of the depth of the problem. “We’re launching with student loan data given the crisis levels it has reached in the U.S., where it is the second largest debt category behind mortgage. Over 44 million people, hold $1.6 trillion in outstanding loans,” Plaid’s Kate Adamson wrote in a blog post introducing the new product.”