Plaid has seen an increase in its customer base as it expanded its fintech services.
Initially known for connecting consumer bank accounts to financial applications, Plaid has broadened its offerings to include lending, identity verification, credit reporting, anti-fraud, and payments over the years.
Despite an acquisition attempt by Visa that was thwarted by antitrust regulators, Plaid managed to raise funding at a $13.4 billion valuation and diversified its revenue streams.
Moving beyond just fintech clients, Plaid now serves various large companies, including a mix of established fintechs and incumbents like Venmo, SoFi, Chime, Rocket Money, H&R Block, Western Union, Affirm, Citi, and Shopify.
In a strategic move, Plaid appointed Jennifer Taylor, with extensive experience at companies like Cloudflare, Salesforce, Facebook (now Meta), and Adobe, as its first president earlier this year.
Plaid’s Diversification and Growth
Expanding its product suite has enabled Plaid to attract enterprise and traditional financial institutions, with growth in these segments outpacing the rest of the business.
Plaid has significantly grown its enterprise customer base, reaching over 1,000 customers in recent years, and expanded its products into new markets and industry segments.
Product lines such as identity, payments, and credit have witnessed rapid growth, with the identity product being the fastest-growing among non-fintech clients.
The launch of Layer, aimed at streamlining onboarding steps, aims to enhance user experience and speed up processes for customers, leading to higher conversion rates.
With plans for a potential IPO, Plaid’s foray into enterprise aligns with strategies seen in other large fintech companies like Stripe and Brex.
The company’s focus on enterprise and product diversification signals a shift in its future plans and potential investor appeal as it moves towards going public.
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