ID.me and Plaid have partnered to let government agencies verify both a benefit claimant's identity and the bank account receiving the payment within a single process.
The partnership combines ID.me's digital identity wallet with Plaid's financial account verification tools, allowing state and federal agencies to confirm that a payment account belongs to the verified recipient before funds are disbursed. Under the arrangement, ID.me verifies the identity of the person requesting a benefit, while Plaid verifies that the associated bank account belongs to that same individual.
Addressing a gap between identity checks and payment accuracy
According to the companies, agencies have invested heavily in strengthening identity verification in recent years, but the processes used to confirm where benefit payments land have not developed at the same pace. This has created a gap in which a claimant can pass identity checks that meet federal standards and subsequently enter bank account details that do not belong to them.
The companies cited data from the US Government Accountability Office showing that unemployment insurance improper payments reached USD 5.6 billion in fiscal year 2025, a rate of 14.9%, marking the fourth consecutive year that the figure has exceeded the federal standard. Existing methods for confirming bank details, such as mailed voided cheques or manual review queues, can take from several days to multiple weeks, and the companies noted that this can force agencies to choose between processing speed and payment accuracy.
How the integration works
Through the partnership, recipients link their financial account within the same digital flow used to complete identity verification, rather than submitting separate documentation. Eligible claimants can enrol in direct deposit within minutes, while agencies continue to disburse funds through their existing payment processors.
The companies said the integration is designed to deliver several capabilities: a single verification flow that removes the need for bank statement uploads or caseworker calls to financial institutions; account ownership checks conducted at the time of verification using data from the recipient's own bank, matched against the verified identity before funds are released; coverage extending to regional banks, credit unions, and digital-first institutions that are often underrepresented in static verification databases; a dated audit record linking verified identity to the account paid, intended to support compliance requirements; and a consent process in which recipients authorise the bank connection themselves, with data sharing limited to information required for the check and no transfer of account credentials or transaction history to the agency.
Company officials from both ID.me and Plaid said the partnership is intended to close the gap between confirming who a claimant is and confirming where their payment is sent, to reduce improper payments while allowing eligible recipients to be paid more quickly.
