Plaid CEO has some words for Stripe: https://twitter.com/zachperret/status/1521898404061716480
Ryan Breslow vindicated again...
Stripe Financial Connections
71–80 of 263 posts
Re: Stripe Financial Connections
#72https://twitter.com/pitdesi/status/1521906115914526721
Not a good look, the lawsuit is going to be interesting for sure.
Re: Stripe Financial Connections
#73Earlier quoted context omitted.
Plaid founder here. Stripe does not integrate with any bank API's directly (AFAICT). They wrap two aggregators, MX and Finicity to build this product. (Also, not sure what MX products they are using, but MX itself is an aggregator of aggregators, including others such as Yodlee.) On pricing, Stripe's listed rates are 30-200% higher than Plaid rates (perhaps due to high vendor costs). That said, if anyone does have fe…
Unlike Plaid, Finicity and Yodlee have direct integrations with some banks. Example: Silicon Valley Bank has direct integration with Finicity. SVB through Plaid breaks quickly (because they require some weird 2fa policy). Let me know if I'm missing something but if Stripe is A) providing reliable connection to common banks Plaid misses and B) saving it's users from all the headaches of integrating with old school ser…
Plaid has direct integrations with many banks too -- Silicon Valley Bank is actually a Plaid partner for ACH processing (see https://www.svb.com/news/company-news/silicon-valley-bank-an...). Not sure when your bad experience with 2fa was but Plaid's connection to SVB has improved over the past ~6 months as we've begun to work together more closely and should continue to do so. [I work at Plaid]
Re: Stripe Financial Connections
#74I work at one of the companies that integrated Financial Connections during its beta, moving from Plaid Auth. We use the link to bank accounts for instant account verification and as a fraud signal for ACH payments. However, we definitely can’t do a better job than Stripe could at risk analysis, provided they had access to metadata on the bank account when processing the payment and could provide insights from their entire platform. Now they do.
I’d guess the big benefit here, besides taking some of Plaid’s existing customers, is what’s possible now that Connections lives alongside the other things Stripe offers like ACH, loans, and identity verification.
Re: Stripe Financial Connections
#75The limit to only daily pulls and up to 180 days of historical data is pretty disappointing. Would expect Stripe to push the envelope here and move down to near-instant updates and full historical data. This is basically a knockoff of existing solutions done at par or worse which is surprising to see from a company like Stripe. Maybe they've lost a bit of their magic or focus. Will be interesting to see how everyone adapts and improves to this announcement.
Re: Stripe Financial Connections
#76Earlier quoted context omitted.
In the US your public bank account number is effectively a password to debit your account! There’s literally no authorisation at all!
> In the US your public bank account number is effectively a password to debit your account! There’s literally no authorisation at all! Don't you also need the routing number? How does this differ in other countries or anywhere that checks are used?
A check needs a signature and has some security feature built-in. You might argue that it's not sufficient, but it's the same deal as paper money for example. The cost/benefit ratio is too low for counterfeiting checks to be useful, most of the time.
Re: Stripe Financial Connections
#77Earlier quoted context omitted.
> In the US your public bank account number is effectively a password to debit your account! There’s literally no authorisation at all! Don't you also need the routing number? How does this differ in other countries or anywhere that checks are used?
A check needs a signature and has some security feature built-in. You might argue that it's not sufficient, but it's the same deal as paper money for example. The cost/benefit ratio is too low for counterfeiting checks to be useful, most of the time.
[deleted]
Re: Stripe Financial Connections
#78Plaid CEO has some words for Stripe: https://twitter.com/zachperret/status/1521898404061716480
In case tweet disappears:
> Wow! Jay, you took interviews with Plaid & asked probing questions multiple times over the past few years, and your team sent repeated RFP's (under NDA!) to us asking for tons of detailed data. I wish y'all the best with these products, but surprising to see the methods.
Re: Stripe Financial Connections
#79Earlier quoted context omitted.
Edwin from Stripe here. Stripe does integrate directly with banks. In our beta period, most volume we’ve seen has been over bank APIs. Some banks do not have APIs—we use financial partners to connect with them, and we’re talking with many banks in hopes that they will enable direct API access soon. Our pricing is upfront: https://stripe.com/en-us/financial-connections#pricing . We’ve worked with a large beta group of…
Which banks have OAuth APIs? I would love to switch to one of those instead of exposing my password due to my bank's incompetence.
chase has an OAuth flow but not every integration uses it.
Re: Stripe Financial Connections
#80If Stripe can leverage their banking relationships to leapfrog Plaid by integrating directly with bank's APIs instead of doing screen scraping... that would be massive! It seems like Plaid's biggest weakness is the flakiness of their connections, which creates so much frustration/churn downstream. Plaid's other weakness is their opaque, enterprise-style pricing, which is seems like Stripe is doing away with. Hopefull…
Plaid founder here. Stripe does not integrate with any bank API's directly (AFAICT). They wrap two aggregators, MX and Finicity to build this product. (Also, not sure what MX products they are using, but MX itself is an aggregator of aggregators, including others such as Yodlee.) On pricing, Stripe's listed rates are 30-200% higher than Plaid rates (perhaps due to high vendor costs). That said, if anyone does have fe…
@zach this is what I find very frustrating about the current players. We recently got pricing from you and obviously being under NDA won’t share the figures but I’m not seeing the discount you quote above compared to stripe.
Further there are significant platform minimums and platform fees that add large costs initially.
How do you reconcile the above comments from our interaction?