JP Morgan has joined Amex in adding additional funding for Plaid during its Series D funding round. This comes after the initial Series D funding round brought in $425 million for Plaid. As Amex was already a partner for the company, the addition of JP Morgan will provide some extra financial muscle behind the company.
The initial funding round for Plaid led to a valuation of $13.4 billion being placed on it. The payment institution is dedicated to trying to increase access to fintech services through customer financial accounts. In attempting to do this, it has previously partnered with Square. This partnership saw Plaid offering better quality ACH transactions to merchants at the financial services firm.
One of the main focuses of Plaid is offering customers the ability to access different fintech firms without having to provide personal details. It provides security and safety when connecting to these firms without removing any of the payment possibilities.
Plaid also intends to bring in new products that will allow banks and fintech companies to connect more easily. This will provide the level of security that banks expect while also making sure that no functionality is removed. As the fintech landscape continues to move forward, new and innovative products are vital to the industry’s continued success.
Plaid had this to say in its announcement:
We built Plaid with a simple vision: if we could create a more open and connected financial system, consumers would benefit from more choice, control and oversight over their financial lives. Today, we are excited to announce funding from J.P. Morgan Private Capital Growth Equity Partners and existing investor Amex Ventures as part of our previously announced Series D, which was led by Altimeter Capital and Silver Lake Partners.
Plaid is also intending to increase the investment that it puts towards building new products. This is expected to allow it to upgrade its ecosystem. From here, it will continue to work with banks and fintech companies to try and grab a foothold in the fast-growing digital financial services world.
In May, Plaid partnered with Square, in order to help businesses benefit from ACH payments.
