Plaid is a way to connect your bank or any financial institution to apps that help to make payments or do any financial transaction. Plaid is a service that connects your banking service to UPI apps to make payments with ease. You will connect with Plaid while using apps like American Express, Venmo, or Upstart. Plaid authenticates your financial information, permitting companies to transfer sensitive information securely.
Paid securely connects your banking services with apps, and it makes sure that your bank details remain safe in the process of lining your account. Plaid works with reputed banks like Bank of America, Wells Fargo, American Express, and U.S. Bank.
How Does Plaid Work?
Many financial companies have a valid reason to have access to some of your financial information. Using Plaid allows these sites to access this information without giving them your bank or credit card login credentials.
Plaid works as a middle-man between banks and apps, when you download any app and when you are asked to fill in bank details then you will be redirected to Plaid. Then you have to log in to Plaid with the app’s username and other details.
Plaid contacts the app to verify your details, and then it asks you to fill in your bank details. All these details stay with Plaid only, that’s the key feature of this service that it keeps your details safe.
Once you have used Plaid to authenticate your bank information, the connection is in place and can be used to transfer the financial information that you authorize. This could be information like transaction history, balance, or other information.
Plaid Is Safe Or Not?
When the topic is banking details then it is necessary to be concerned about safety. Your bank details are the most important because if they get leaked then you will get scammed and all your assets will be vanished from your account within seconds.
Is Plaid Safe, it works to hide your banking and card details from the apps, you don’t have to give access to every app for your banking details because every app is not safe. Plaid works to save you from any scam and they make sure that they provide the best privacy to their users.
Plaid is loaded with high-security protocols available while sending your financial data, it uses the Advanced Encryption Standard (AES 256) and Transport Layer Security. Plaid also uses Multifactor Authentication to add an extra layer of security.
Conclusion
Plaid has been here for a very long time and it has more than 11000 satisfied users. Companies like Venmo, Acorns, Betterment, and many others are customers of Plaid. To summarise the use of Plaid we can simply say that Plaid connects with a third-party app but the app doesn’t get your login information. It is safe to use and keeps your financial activities safe.
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