A link to Plaid enables Green Dot to leverage open banking for its new GO2bank – Digital Transactions mobile app

Highlighting the rising profile of open banking in the financial lives of consumers, Green Dot Corp. announced on Tuesday that it has completed the integration of its GO2bank mobile banking app with Plaid Inc.’s Plaid Exchange network. The move will connect users of Green Dot’s app, launched only in January last year, to more than Another 6,000 apps and services, the companies said.

“Our partnership with Green Dot helps GO2bank customers securely connect their accounts to the apps and services they choose,” Ginger Baker, financial access manager for San Francisco-based Plaid, said in a statement.

The link through Plaid will leverage Plaid Exchange, an open application programming interface that accelerates data connections on behalf of financial services customers. Open banking service providers connect payments and other financial services businesses to accounts held by individuals at banks and non-bank financial businesses to verify account ownership and fund balances and to facilitate the movement of money.

GO2bank is primarily aimed at gig workers, low-income consumers and small business owners, says Green Dot. App features include the ability to access payroll up to two days in advance and the ability to deposit money at over 90,000 retail stores. It also offers credit and debit card, rewards, overdraft protection, bill payment, ATM access and savings feature. When launching the app, Green Dot chief executive Dan Henry said the company was “asking customers to commit to Go2bank and their primary bank account.” At launch, Green Dot waived account fees for customers who signed up for direct deposit.

Plaid is a leading provider of open banking services at a time when the service has grown in importance in payments and other financial services. Open banking can be particularly useful for payment companies looking to facilitate the movement of money outside of established networks like Visa or Mastercard. For this reason, Visa Inc. and Mastercard Inc. decided to acquire open banking platforms. Visa recently completed its $2.15 billion acquisition of the Stockholm-based company Tink ABwhile Mastercard has already paid $825 million to buy Finicity Corp.

Visa has withdrawn an offer in 2020 to acquire Plaid for $5.3 billion after the Justice Department raised antitrust concerns.

Long based in Pasadena, Calif., Green Dot announced in May last year that it was moving its headquarters to Austin, Texas. The company has offices in Pasadena as well as in Florida and Ohio.