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

Plaid and digital identity wallet ID.me launched a benefits payments partnership, according to a Thursday (Sept. 17) news release.

The collaboration is designed to combine ID.me’s wallet with Plaid’s financial account verification tools, letting government agencies confirm that the account receiving a payment belongs to the verified recipient before money is sent, per the release.

“This partnership benefits both state and federal agencies as they work to consolidate legacy capabilities, reduce technical duplication and improve citizen access,” the release said. “Agencies have spent years strengthening identity verification, yet the systems for confirming where the money lands haven’t kept pace. A claimant can clear a federal standard identity check and then enter a bank account that is not theirs.”

Improper unemployment insurance payments totaled $5.6 billion in fiscal year 2025, a rate of 14.9% and the fourth year in a row above the federal standard, according to the release, which cited data from the Government Accountability Office.

“These long-standing capabilities make confirming bank details a paper-heavy and slow process, with multiple openings for fraud, waste and abuse,” the release said. “A mailed voided check or a manual review queue runs days to weeks. It leaves agencies choosing between accuracy and speed, delaying people who qualify for benefits in order to catch the ones who don’t.”

Via the partnership, recipients link their financial account within the flow they are already completing. Eligible claimants can enroll in direct deposit in minutes, and agencies continue to send disbursements through the processor they are already using, according to the release.

“Identity verification tells an agency who is asking to be paid, but it does not tell them where the money is going,” ID.me Founder and CEO Blake Hall said in the release. “That gap is where benefits go missing, and it’s costing our government and everyday Americans billions of dollars. Through our partnership with Plaid, agencies would be able to confirm the account belongs to the verified person before a dollar moves, and eligible people get paid faster.”

The PYMNTS Intelligence report “When ‘Good Enough’ Isn’t Enough: Digital Identity Verification in the Age of Bots and Agents” found in January that digital identity checks are now at the nexus of growth and risk.

“Among financial firms, 76% generate at least three-quarters of their revenue through digital channels,” PYMNTS reported Aug. 21. “Still, 74.6% said their verification technology produces inconsistent results. The upside is that firms can improve without starting over.