JPMorgan said to start charging fintechs for customer data access; PayPal stock slides

JPMorgan Chase (NYSE:JPM) is planning to start charging fees on financial technology companies for access to customer bank data, a move that could significantly reshape how fintechs operate, according to a Friday media report.

Several high-profile payments companies saw their stocks extend losses on the news, with PayPal Holdings (NASDAQ:PYPL) retreating 3.8% and Block (XYZ) sliding 4% in midafternoon trading.

The lender has circulated pricing sheet to firms that link fintech applications to customer accounts, also known as data aggregators, laying out charges that vary depending on the type of data use, Bloomberg reported, citing people familiar with the matter.

The higher charges would be applied to payments-focused firms, the people added. Apps that let users move money — like PayPal’s (NASDAQ:PYPL) Venmo, crypto wallets like Coinbase Global (COIN) and retail trading platforms like Robinhood Markets (HOOD) — depend on direct access to customers’ bank account information to function. That access has generally come at no cost to the companies.

Meanwhile, data aggregator firms have been in talks with JPMorgan (NYSE:JPM) about the planned charges, and those discussions remain constructive and ongoing, another person familiar told Bloomberg.