Plaid unveils Plaid Deposit Switch, automating account funding

By Pavithra R

Plaid, a FinTech company democratizing financial services through technology, has announced the launch of Plaid Deposit Switch, a new product, currently in beta stage, that makes it easier and faster for users to establish or change the destination of their paychecks.

Financial platforms are continuously evolving to help users take control of their financial health. However, changing where direct deposits go is usually a manual and time-consuming process for both FIs and end-users. Plaid aims to help by building the infrastructure that bridges the gap between financial institutions and payroll data, starting with direct deposits.

By automating direct deposit account funding, banks can optimize their account funding flows and increase customer lifetime value. Deposit Switch offers both instant and fallback methods for users setting up recurring account funding. Plaid’s proprietary instant switch method connects a user’s payroll or employer account directly through Plaid Link.

“FinTech has given people more choices to find what works best for their specific money management needs. Plaid Deposit Switch is helping us streamline the account funding process, which will give customers a better experience and should also benefit our customer acquisition and retention,” said Liran Zelkha, CTO, Lili, which provides banking services for freelance workers, including no-fee early access to wages with direct deposit.

Instant account funding is available to users with an account from the largest payroll providers to gig economy platforms including ADP, Paycor, Zenefits, DoorDash, Postmates, and more. The company is also building a fallback method for users unable to utilize the instant switch method. Users will be able to ask Plaid to contact their employer on their behalf to update their direct deposits.

“Yotta helps customers develop better financial habits by making it easy and fun to build and grow their savings. Working with Plaid, we’ve made it faster and easier for customers to take the first step by establishing and funding their accounts with direct deposit. Yotta also integrates with Plaid Exchange, so customers can securely use their Yotta account with other fintech apps for digital payments, financial planning, investments and more. FinTech is the new normal for most Americans and Plaid helps Yotta meet customers where they are,” said Ben Doyle, Co-Founder, Yotta. 

Founded in 2012, Plaid is focused on building the enabling infrastructure for financial services that provide a secure and efficient way to move financial data, reducing fraud and providing more product and service options to consumers that can improve their transparency and control over personal financial information.