Plaid and ID.me join forces

The two companies launched a partnership to combine ID.me's digital identity wallet with Plaid's financial account verification tools for government benefit payments.

The identity gap that costs billions

Agencies can verify who is asking for benefits, but they can't confirm where the money actually goes. A claimant can pass identity checks and then provide someone else's bank account.

“Identity verification tells an agency who is asking to be paid, but it does not tell them where the money is going.”

Improper payments hit 5.6 billion

Improper unemployment insurance payments totaled 5.6 billion dollars in fiscal year 2025, a rate of 14.9 percent and the fourth consecutive year above the federal standard.

Paper checks slow everything down

Current verification relies on mailed voided checks and manual review queues that take days or weeks, forcing agencies to choose between catching fraud and paying eligible people quickly.

Real-time verification, instant enrollment

With the partnership, eligible claimants can enroll in direct deposit in minutes by linking their financial account within the existing application flow. Agencies continue using their current payment processors.

Digital identity verification still inconsistent

A PYMNTS Intelligence report found that 76 percent of financial firms generate most revenue through digital channels, yet 74.6 percent said their verification technology produces inconsistent results.