Plaid is a popular way to securely connect your bank or other financial institution with financial apps, to easily share data the app needs to function. If you’re registering with a new app - to send a payment, manage your money, get a loan or invest, for example - you may need to share some financial information as part of the sign-up process.
But before you link your accounts, you’re probably wondering: is Plaid safe to use? This guide covers all you need to know about how Plaid works - and we’ll also touch on Wise as an example of a financial application that uses Plaid for a seamless user experience. Open a Wise Account for free in the Wise app, and then link via Plaid to other apps - like Venmo or Chime - to move money with ease.
Is Plaid safe?
Yes. Plaid was built with security in mind, and uses a wide range of ways to keep customer financial data and information safe. In fact, it’s because of the extra layer of safety that many apps choose Plaid in the first place.
Here are some of the ways Plaid keeps your personal information safe:
- You can always manage your own information on Plaid, removing connections as needed
- Plaid has its own multifactor authentication process in case your own bank doesn’t use one
- Plaid uses best in class data encryption and has a 24/7 security operation
- Plaid is certified in internationally recognized security standards
- Plaid uses independent security testing and offers a bug bounty program to continuously improve systems and processes
Why does Plaid need my bank password?
When you connect an app to a bank or credit union account, for example, you’ll be prompted to enter your online banking information. Plaid uses this to verify your identity and to confirm it’s safe to pass on the information the app needs to function. Your password isn’t passed on to the app itself for security².
Is it safe to give my bank login to Plaid?
It is generally considered safe to use Plaid.
Depending on the specific app you’re using, your login information may be held securely by Plaid, but not passed on to the app in question. In this case, Plaid protects your data with a broad range of industry level approaches. However, in many cases, Plaid doesn’t retain your bank login details at all. Instead, your bank will give Plaid a security identifier to use to keep your app up to date, with no need for your login details to be retained or shared³.
Link your Wise account with Plaid today
Open a Wise Account in the handy Wise app, to hold 50+ currencies, and integrate with Plaid to connect with other apps like Venmo or Chime.
Wise Accounts come with local banking details for up to 10 currencies, so you can get paid fee free from around the world, send money to 80+ countries, spend with a linked card in 170+ countries - and use Plaid to seamlessly integrate your account with the apps you love.
Get a Wise account today
Please see Terms of Use for your region or visit : Only Pay for What You Use for the most up-to-date pricing and fee information.
How secure is Plaid?
Plaid is secure, with a broad range of approaches to keeping customer accounts - including personal and financial data - safe. Wherever Plaid needs to retain data it is encrypted and held on secure cloud based servers, and Plaid offers additional layers of security like multifactor logins even if your own bank does not. While you’ll need to take normal common sense security precautions with Plaid as you would with any financial service, in most cases you can trust Plaid is safe to use.
How does Plaid secure your data?
Plaid uses a range of approaches to data protection including advanced encryption, security audits by independent bodies, and the Plaid Portal which lets users review, manage and control the connections they’ve made through Plaid. This means you can always see which apps have your data, and manage the connections from within Plaid if you want to.
What apps and businesses use Plaid?
Plaid connects thousands of institutions⁴ around the world to apps which help people manage their money, budget, save, get loans and run their businesses⁵. Because Plaid has a broad range of use cases, the apps which are powered by Plaid are quite varied - from budgeting apps to investment services, to companies offering loans, and services like Wise which offer global money transfer services.
| 💡 Learn more about apps that use Plaid here. |
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Bottom line
Plaid is considered safe to use. As a fintech company, it has been built to offer both security and a straightforward user experience, so you can connect to the apps you love without hassle.
Sources:
- Plaid safety
- Plaid - how it works
- Plaid - does Plaid have access to my credentials?
- Plaid - institutions
- Plaid - apps
All sources checked on 19 December 2022
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information. This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional. We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
