Plaid is coming to eat Stripe’s lunch
Plaid expands into identity verification, fraud prevention, and other services
When you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.
While it might be overlooked, Plaid is one of thebest payments gatewaysgoing and the $10-billion-plus startup is looking to move into new territory.
The firm hasannouncednew tools foridentity verification- a fundamental part of anyecommercetransaction - andfraud prevention. The additions to its portfolio mean it is competing directly with payments giant Stripe.
“We’re introducing Plaid Identity Verification (IDV) and Monitor – a complete verification, AML, and KYC compliance solution available in early access starting today,” the company says. “We’ve heard from many of you that having a frictionless identity verification experience is critical across a variety of use cases: from account opening and funding, to trading and lending.”
Fintech forever
The expansion, announced at the Plaid Forum event, is notable because Stripe recentlyannouncedFinancial Connections, letting its customers connect direct to their customer’s bank accounts.
The two fintech behemoths are increasingly moving into each other’s main catchments, setting them up for a pretty epic battle.
Speaking toTechCrunch, Plaid’s head of identity Alain Meiersaidthat account connectivity has traditionally been its core focus and adding more fintech companies – such as Robinhood and Chime – is all part of the plan.
“This ultimately helps build trust and security for the entire ecosystem as more people onboard to new fintech apps and services,” Meier said. “That’s why we are expanding our platform to now include identity verification and new tools for fast and easy account funding and disbursements.”
Are you a pro? Subscribe to our newsletter
Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed!
Stripe will now let businesses pull your financial data directly>Apple will let App Store developers quietly squeeze you for extra cash>Mastercard will now let you pay with a wave
The battle to be the dominant fintech company has been raging for many years, as Stripe, Plaid, and other startups look to take on incumbent banks at their own game.
Facilitating payments on the internet and offeringmerchant servicesis an incredibly lucrative business – and competitive one.
When Stripe introduced Financial Connections, Plaid’s cofounder Zach Perret accused the company of copying its products in a now-deleted tweet, drawing a rebuttal from Stripe’s leadership.
Patrick shared this note internally about the Financial Connections/Plaid kerfuffle. Glad to put it behind us, and I’m look forward to continued vibrant competition in fintech (which customers benefit from!) in the future. pic.twitter.com/LOnlGIPDdqMay 6, 2022
Ultimately, there is almost certainly enough space in the online payments and services market for two or more huge companies to coexist.
Plaid explicitly making moves into Stripe’s core areas, and vice versa, is a good thing for companies and customers for their services.
Max Slater-Robins has been writing about technology for nearly a decade at various outlets, covering the rise of the technology giants, trends in enterprise and SaaS companies, and much more besides. Originally from Suffolk, he currently lives in London and likes a good night out and walks in the countryside.
Samsung plans record-breaking 400-layer NAND chip that could be key to breaking 200TB barrier for ultra large capacity AI hyperscaler SSDs
Adobe’s decision to eliminate perpetual licensing for its Elements software has stirred controversy among consumers
Scotland vs South Africa live stream: how to watch 2024 rugby union Autumn International online from anywhere
