Plaid’s purpose is to facilitate communication between financial services applications and banks. It also has the benefit of linking with users’ credit card providers.
With PayPal, while making a transaction, Plaid communicates to keep all login information private. Plaid is a platform with excellent encryption protocols to protect all user information. Here we tell you all about it.
How to set up PayPal with Plaid?
It is common to use Plaid when you connect your bank account with financial services such as Upstart, American Express, or Venmo. The purpose of Plaid is to authenticate financial information to allow businesses to transfer sensitive data securely.
The connection between PayPal and Plaid is sometimes not made directly. Credit/debit cards or bank accounts from Venmo, Chime, or other platforms can be associated with Plaid to make transactions.
There are different companies powered by Plaid, such as Wave, Varo, Brigit, Metal, Drop, and Venmo. Plaid connects with over 11,000 financial institutions in Canada, the United States, and Europe.
Connecting an account with Plaid
Connecting an account with Plaid is simple to process. When you log in to Plaid, you will see a list of financial institution partners you can join. Now you need to enter your username and password.
It will take a few seconds to process the information because it will encrypt the chosen data and share it securely with the application to be used.
In other words, it sends the necessary information from the bank to PayPal, providing a secure connection between it and PayPal.
Is Plaid a secure option?
As expected, it is a company with excellent security methods to ensure that all customer data is kept safe from hackers or anyone else who wants to steal personal information.
Plaid uses encryption protocols such as Advanced Encryption Standard (AES 256) and Transport Layer Security (TLS) to safeguard all information when sharing financial data.
Knowing that it works with these security standards gives users more confidence to make their transactions across different platforms, ensuring that their data will always be secure. According to Plaid’s trust and security page, it’s a platform that uses:
- Uses multi-factor authentication (MFA) to protect the account better if the financial institution does not offer it
- Operates a bug bounty program to have even more eyes on Plaid’s security
- Promises never to share data without user permission and never to sell or rent personal information to other companies
- Allows you to control which companies have access to the data and what data is shared with each company
Is it beneficial to use Plaid?
Of course, it is the best solution to prevent others from acquiring personal information from users’ bank accounts or credit/debit cards when banks do not have effective security methods.
Being part of Plaid is simple when the bank account is from one of its allied platforms, and the account association process does not require many steps.