The arrangement with Plaid will provide new digital banking options for Amex customers while enhancing their account security.

American Express (NYSE: AXP) has announced a data sharing agreement with Plaid, a data network that powers the digital financial ecosystem, to offer customers enhanced digital finance options while ensuring their account security. Through an API-based integration, American Express customers will gain secure connections to over 8,000 financial apps and services within Plaid’s network, without having to share their American Express password with third parties.

This partnership is particularly significant as US consumers on average use three fintech apps for managing their finances. The integration combines Plaid’s services with American Express’ Account Financials API, providing customers with transparency and control over the permissioning and sharing of their financial information. (American Express)

It eliminates the need for customers to share their American Express credentials with any other party besides American Express itself. Customers can leverage American Express’ secure authentication procedures to enhance the security of their transactions before releasing their account financial information to trusted third parties.

The agreement aligns with American Express’ commitment to delivering security, control, and transparency to customers when sharing their account data with financial apps. By partnering with Plaid, the bank aims to create a safer digital experience for customers who increasingly rely on various digital tools for financial management.

Benefits for American Express customers include enhanced security through OAuth2 protocol support, real-time sharing of directed account information, increased control and transparency over connections to financial service provider apps, and fewer sign-on disruptions. The API integration ensures stable connections that last longer, facilitating easier sign-ons.

The API-based integration with Plaid is scheduled to launch in 2023.

American Express is a globally integrated payments company, while Plaid powers tools that help individuals achieve financial well-being by securely connecting their financial accounts to desired apps and services. Plaid collaborates with numerous companies and financial institutions worldwide.

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