Glossary

What is Plaid?

What is Plaid? Plaid is a financial-data infrastructure company. When an app asks you to log in to your bank to verify identity, confirm balances, or share account data, that connection is very often powered by Plaid. Plaid sits between the app and the bank rather than being either one.

What Plaid is used for

Identity verification: confirming a user's identity by matching bank or document data.
Balance and account checks: letting an app confirm funds or account ownership.
Income verification: sharing payroll or deposit data with permission.
Payments: initiating ACH or instant transfers through bank rails.

What Plaid is not

Plaid is not a bank and does not hold deposits. It is a data and payments infrastructure layer. When you grant an app access through Plaid, you control what data is shared and can revoke access. The data flows under your permission and the app's privacy policy, not Plaid's alone.

Is connecting through Plaid safe?

Plaid uses tokenized access rather than sharing your bank password with the app directly. As with any data-sharing permission, review what the app is requesting, connect only to apps you trust, and revoke access for apps you no longer use through your bank or Plaid's settings.

How this relates to Kronos

Kronos uses Plaid for identity verification at onboarding and, where enabled, for linking external accounts. KronosPay LLC is a financial technology company, not a bank. Plaid handles the data and verification layer behind those flows. Read the bank-status page.

Primary sources

General educational information only. Plaid is a trademark of its owner; this independent definition was not sponsored, reviewed, or endorsed by Plaid.