Plaid Unveils Deposit Switch To Digitize Account Funding

Plaid introduced its Plaid Deposit Switch beta product, which lets users set up or modify the destination of their paychecks. The FinTech says Deposit Switch comes with immediate and backup processes for consumers who are implementing recurring account funding, according to a Thursday (Jan. 28) blog post.

Plaid’s instant switch process links a consumer’s payroll or employer account via Plaid Link. Staffers at firms big and small, as well as freelance workers, can access instant account funding. Plaid is developing a backup process for consumers who can’t harness its instant switch process. Consumers will have the capacity to request that Plaid reach out to their employer for them to revise their direct deposits without firms needed.

Lili, a banking service provider for freelance workers, is one of Plaid’s beta partners. “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,” CTO Liran Zelkha said in the post.

Plaid says that it is accepting new beta partners as of now. “Whether you are a bank providing consumers with better interest rates or a lending enterprise operationalizing your underwriting flow, we’re excited to partner with you,” Plaid Product Manager Ashley Cornall said in the blog post.

Separately, Plaid is reportedly looking at doubling its size in Europe. The focus for the California-based firm is now on widening its international reach after an acquisition for $5.3 billion by Visa didn’t go through. Plaid is reportedly aiming to have approximately 80 staffers in the Amsterdam and London offices by the conclusion of 2021.

Keith Grose, head of the firm’s U.K. business, said the FinTech is concentrating on European expansion because of the high demand it observes there for payments services.

“We’re growing our team of Brits and Europeans,” Grose said, according to a published report. “We are planning to aggressively scale the customers that we have and the volume of payments that we’re handling.”