BankTech

Plaid Deposit Switch aims to simplify changing paycheck destinations

Plaid launches Plaid Deposit Switch as paycheck and payroll innovation takes fintech by storm

Plaid announced on Thursday that the fintech has launched a new product that aims to make it easier and quicker for clients to establish or change the destination of their paychecks. Plaid Deposit Switch is currently in beta and the company has a waitlist for beta partners.

The fintech company said in a blog post that this automation of direct deposit account funding helps banks be more efficient with their account funding flows.

The product offers instant and fallback options for consumers when they set up recurring account funding. The instant switch method connects the payroll account through Plaid Link. Meanwhile, the company is also creating a “fallback method” where consumers can ask Plaid to contact their employer on their behalf in regards to updating their direct deposit, with no forms necessary.

Plaid already has beta partners, including banking services for freelancers company Lili and financial services company Yotta.

“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,” Lili CTO Liran Zelkha said in a prepared statement.

In other Plaid news, the company recently announced it’s launching a nine-month incubator for early-stage startup fintech founders who are Black, Indigenous, or people of color called FinRise. The incubator was inspired from an internal hackathon – Plaiderdays – during the Black Lives Matter protests last summer.

Meanwhile, Plaid, which is fresh off of its breakup with Visa, is said to be eyeing the public markets.

San Francisco-based Plaid powers fintech apps from the likes of Robinhood, Square and Venmo.

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