Data, Member Exclusive

With income verification product, Plaid goes deeper into payroll data

  • Plaid launched Plaid Income, its income verification solution for lenders and consumers.
  • The product is the company’s second payroll data solution as it continues to expand into payroll related services.

Email a Friend

With income verification product, Plaid goes deeper into payroll data

Last week, Plaid launched its income verification beta product Plaid Income as an extension of its recent venture into payroll data. Earlier this year, the firm rolled out Deposit Switch which allows users to switch their direct deposits to a bank account of their choice by linking their payroll account. 

Plaid Income offers consumers the opportunity to verify their income and provide lenders with structured income, employment, tax data and source documents.

“With Income, lenders can process this data faster and give applicants immediate certainty,” said Plaid product lead, Kate Adamson. “As a result, lenders can make more informed risk decisions with high-integrity information, issue pre-approvals or approvals faster, quickly approve a more inclusive set of applicants, and spend fewer resources manually reviewing documents.”

plaid income
Source: Plaid

Income verification is a crucial process to secure loans, qualify for mortgages, rent apartments, lease vehicles and get personalized financial advice. The product intends to address friction that arises through income verification processes such as sharing and retrieving multiple documents and PDFs during an income review. 

“As risk appetite across financial services has decreased, we’ve seen lenders add additional verification steps to their application process to gain more underwriting confidence,” said Adamson. “Since lenders don’t want to compromise applicant experience with burdensome additional steps, Plaid Income helps provide instant connectivity to income, employment and tax data right from the source -- payroll providers.”

The offering supports two routes of income verification, namely Payroll Income, which allows users to authenticate through their employer or payroll provider account, and Document Income, which enables users to upload payroll documents through Plaid Link, including paystubs, W2s, and supported types of 1099s.


According to Plaid, Income supports real-time payroll authentication for over 250,000 of the largest employers in the United States, including 80 percent of the Fortune 100.

The solution covers applicants that range from full-time and part-time employees, freelancers, and gig economy workers. With the simultaneous rise in unemployment rates and a flourishing gig economy, up to date user-permissioned data is especially significant for independent contractors during the underwriting process. 

“Decisions based on income verification and employment data – from small business, emergency or auto loans to housing rentals and mortgages – are life-altering, for better or worse,” said Shmulik Fishman, CEO and co-founder of employment data platform Argyle.

“This information is the bedrock of financial transactions in society. Yet the absence of user-permissioned data has fueled a circle of mistrust between consumers, employers and financial institutions, disproportionately impacting hourly workers, independent contractors and those who live paycheck to paycheck.”

According to Fishman, it is imperative that when workers seek financial support in the form of cash advances or other products, their entire financial history is up to date and available to providers.This minimizes predatory lending risks and allows applicants to get financial relief faster. 

Plaid is currently developing credential-less authentication features to improve upon its consumer onboarding experience in partnership with payroll providers, such as ADP.

“ADP and Plaid are actively working towards a partnership around consumer-permissioned payroll data that will enable consumers' credential-less access to their payroll details using ADP's API,” said Meraj Mohammad, vice president at ADP Ventures.

0 comments on “With income verification product, Plaid goes deeper into payroll data”

10-Q, Member Exclusive

Visa vs Mastercard: Who performed better in Q4 2022?

  • The 10-Q newsletter is now part of your Tearsheet Pro subscription, and we're excited to bring you the brand new look of the weekly 10-Q newsletter.
  • Results for Visa and Mastercard's quarter ending 31 Dec 2022 are in – let's take a look.
Sara Khairi | February 06, 2023
Member Exclusive

Tearsheet Briefing: Fintech changed consumer finance — how are regulators thinking about this?

  • Welcome to the first Tearsheet Briefing, featuring weekly insights from our reporters on the intersection of finance and technology – exclusively for Tearsheet PRO members.
  • In our first briefing, we're exploring how the entry of fintech and non-bank firms has added complexity to the financial system, and its implications from a regulatory standpoint.
Sara Khairi | February 03, 2023
Announcement, Member Exclusive

Welcome to the Tearsheet PRO Newsletter

  • We're excited to introduce our new member-only newsletter, featuring fresh and exclusive content from Tearsheet Editors Zack Miller and Iulia Ciutina.
  • Tearsheet PRO is designed to connect the dots, challenge conventional thinking, and keep your finger on the pulse of established and emerging trends. In your inbox every Wednesday.
Iulia Ciutina | February 02, 2023
10-Q, Member Exclusive

Weekly 10-Q: Check cashing fees are getting an overhaul from New York’s financial regulator

  • The New York State Department of Financial Services is putting into practice an updated check cashing regulation following the proposed regulation announced in June last year.
  • And, feeling the heat of the economic downturn, JPMorgan's board has decided that CEO Jamie Dimon will take home the same base pay in 2023 as he did last year -- with no special award or bonus.
Sara Khairi | January 31, 2023
Blockchain and Crypto, Member Exclusive

Bankchain Briefing: Banks onboard the blockchain train

  • The lawsuits and insults season is in full swing within the unregulated cryptocurrency space.
  • But cryptocurrency is just one facet of blockchain technology. Tearsheet asked experts for commentary on how traditional banks are experimenting with blockchains.
Lindi Miti | January 27, 2023
More Articles