Venmo has left no stone unturned to compete with the platforms like Cash App and Zelle. It’s cool, feature-packed, and at the same time secure. You don’t have to worry about any threats like phishing or smishing when you link your bank account to Venmo.
As for identity verification which can ask anytime, it can be a bit annoying for users with some Venmo balance. Still, it’s also their part of securing users’ accounts.
Anyway, Venmo uses Plaid to protect users’ bank accounts from getting sneaked into. Plaid houses hundreds of financial institutions, allowing users to connect their bank accounts and providing flexibility in managing their accounts.
But is Venmo on Plaid? If yes, where, If No, why not?. To answer your question, we’ve written this article so you can get a clear explanation of both the platforms and what relationship they share. So without any more delay, let’s get started.
Is Venmo a Bank?
No, it’s a fintech company or a Peer-to-peer payment transfer app that works with third-party banks to provide banking services. For example, It’s partnered with Bancorp Bank and Member FDIC Mastercard debit cards and up to $250,000 insurance coverage on Venmo debit card funds.
The credit card that it offers is provided by Synchrony bank. So with the help of these banking partners, Venmo provides debit and credit cards to eligible users.
You require a Venmo debit card to access the Direct deposit feature and unlock your spending capacity. And if you want to build your credit history while enjoying zero monthly or annual fees, Venmo’s credit card is the best choice.
Since you don’t get a separate account for your direct deposits, all funds you receive from your employers will sit in your Venmo account balance. However, there is a separate section to see your crypto funds.
What is Plaid, and how does it work?
Plaid makes it easier for users to manage their bank accounts systematically and securely. It is a technology company that lets users connect and verify their bank accounts through popular fintech apps like Chime or Venmo.
Compared to sharing your financial data directly with the fintech companies, Plaid is a more secure, simple, and reliable way to connect bank accounts. It works with over 11500 credit unions and U.S banks, excluding some financial institutions in Canada, Europe, and the U.K. Like Venmo, more than 7,000 fintech apps have already been integrated with Plaid to verify users’ accounts.
From personal finance to lending to digital banking to consumer payments, every type of financial app uses Plaid to streamline banks’ verification process.
When you add your bank to Venmo, you get two options – Manual and Instant. If you choose an Instant verification method, you connect your bank using the Plaid, while the Manual method may take up to 3 days to verify your data and be a less secure option of the two.
What bank does Venmo use for Plaid?
Well, Venmo is not a bank, so you won’t find it anywhere in the bank lists of Plaid. Maybe you already know that Plaid works with hundreds of popular fintech apps to connect and verify users’ financial data, and Venmo is one of them.
Since, Plaid enables users to connect their banks to fintech apps and services and manage their accounts all in one place, Venmo integrated Plaid because it is safe and never shares personal information.
However, it’s also unnecessary that a neo-bank or a fintech bank with banking partners can’t make it on Plaid’s bank list. Chime is an example that is not a full-fledged bank; still, Plaid holds it as a bank.
But unfortunately, Venmo is not even close to Chime regarding banking services, and it doesn’t even claim to be a neo-bank.
If Venmo plans to be operated as a bank in the future, then it’s more likely to be listed on Plaid. But it’s not going to happen, atleast for the next few years.
How to use Plaid on Venmo?
Using both companies together is straightforward, as no sign-ups are involved. To get started, you must add your bank account via the Instant Verification method. First, you need to sign up for Venmo using your phone number and email address and then follow the instructions below –
- Launch the Venmo app.
- Click on the top right Menu icon from the app’s Home screen.
- Now, In Menu options, go down and access Settings.
- Next, click Payments Methods.
- In the Payment methods, click “Add bank or card.”
- Next, tap the Bank option.
- Now, choose “Instant (Recommended)” and hit Continue.
- Next, search and select your Bank and sign in.
- Once you type in a verification code and confirm your identity, your account will be linked.
Venmo uses Plaid to verify your bank data and check your balance when making a transaction. You can free to turn off Plaid by removing your banking account verified by Plaid.
Frequently Asked Questions (FAQs)
How to Find Venmo on Plaid?
There is no such bank on Plaid because Venmo is a financial company, not a bank.
Can I delete Plaid on Venmo?
Yes, if you’ve verified your bank using the Instant option, you can remove it from the app. Remember, using a Manual option to add your bank will be a bit time-consuming.
Can I use Venmo without Plaid?
Yes, Plaid is just another option to verify your bank information because it is more private and secure.
Wrapping it Up
This is the end of our article. We hope you’ve grasped the whole thing about Venmo and Plaid or what they’re and how you can use them together. As we know, Plaid doesn’t have any name under Venmo, as it just has a small role in the app to connect and verify users’ bank accounts.