Plaid and ID.me Team to Strengthen Benefit Payment ID Checks

Plaid and digital identity wallet ID.me have announced a new partnership aimed at improving benefit payment ID checks. The collaboration combines ID.me's wallet with Plaid's financial account verification tools, allowing government agencies to confirm that the recipient of a payment is the verified individual before money is sent, according to a Sept. 17 news release. This partnership is designed to help agencies consolidate legacy capabilities, reduce technical duplication, and enhance citizen access, the release stated.

Government agencies have long sought to strengthen identity verification processes, however, the systems for confirming where money is sent have not kept pace. In fiscal year 2025, improper unemployment insurance payments totaled $5.6 billion, which represents 14.9% and is the fourth consecutive year above the federal standard, as cited by the Government Accountability Office.

The partnership aims to address this issue by making confirming bank details a more streamlined and efficient process, reducing the potential for fraud, waste, and abuse.

Currently, agencies often rely on mailed voided checks or manual review queues, which can take several days to weeks, leaving them to choose between accuracy and speed. This delay can prevent eligible individuals from receiving the benefits they qualify for. By linking their financial accounts within the existing enrollment process, recipients can enroll in direct deposit in minutes. Agencies will continue to send disbursements through the processor they already use, ensuring a seamless transition.

Blake Hall, ID.me's Founder and CEO, emphasized the importance of this partnership, stating that while identity verification confirms who is asking to be paid, it does not indicate where the money is going. This gap has led to benefits being lost and cost billions of dollars to the government and everyday Americans. Through this collaboration with Plaid, agencies can confirm the account belongs to the verified person before any money is transferred, ultimately enabling eligible people to receive their payments faster.