Embedded Finance Briefing: Plaid acquires Cognito to enhance onboarding capabilities
- This week, we look at Plaid's acquisition of identity verification and compliance platform Cognito, in a deal valued around $250 million.
- Plaid putting the pieces together for a complete onboarding program.

The Plaid jigsaw
Since Plaid’s proposed merger with payments giant Visa fell through early last year, the firm has sought to deepen its footprint in embedded finance. Last week, the firm acquired the identity verification and compliance platform Cognito for around $250 million. Buying Cognito expands Plaid’s current suite of services by adding the capabilities to power identity verification processes, know-your-customer protocols, and anti-money laundering requirements.
Cognito is employed by some notable digital providers in the space, including Plaid’s own clients, like Affirm, Current, Brex, and Republic. As part of the deal, Plaid is adding all of Cognito’s staff to its ranks, including the three co-founders.
With Cognito, Plaid can offer a complete onboarding experience.
Plaid CEO Zack Perret, in a blog post, said that a complete fintech onboarding process has three critical parts:
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