Plaid
Plaid is a reputable company that uses encryption and industry-standard security measures to protect your information.
Here’s what you need to know about Plaid:
What is Plaid?
Plaid is a financial technology company that serves as the middle man between financial services and their users. Apps, like Venmo and Robinhood, use Plaid to securely link their users’ accounts to their own platforms. This way, the financial apps never access your information, relying instead on Plaid to supply it for them.
How does Plaid work?
When you sign up for any of the 3,000+ financial applications currently powered by Plaid, you’ll be asked to choose your financial institution from a Plaid-provided list. Next, you’ll enter your login ID and password. Once you’re logged in, Plaid securely shares the information you’ve chosen to link, such as your checking account number, with the app you’re using.
Is Plaid safe?
Plaid uses the highest levels of security possible to keep your information safe. When you link your checking account with a financial application through Plaid, the company instantly encrypts sensitive data and shares it with the application using a secure connection. Plaid will also never share your login and password info with the linked financial application.
According to the Plaid website, the company uses these measures to keep your information secure:
- End-to-end data encryption
- Multi-factor authentication
- Cloud infrastructure
- Robust monitoring
- Third-party security reviews