JPMorgan Chase data-charging plan could "destroy" crypto and fintech startups, executive warns
PANews reported on July 21 that according to Fortune magazine, last month, when JPMorgan Chase informed fintech companies that it planned to charge them for accessing its customers' bank account data, the move caused a strong reaction in many areas of the financial industry. According to four industry executives, the move is a blow to the fintech industry and may have a devastating impact on early startups, including those in the cryptocurrency industry. However, analysts believe that mature fintech companies such as PayPal and Block (formerly Square) may not be greatly affected by this fee adjustment.
Under the plan, the bank could charge data aggregators fees every time a consumer moves money from JPMorgan to a cryptocurrency account or a third-party service like Robinhood. Crypto and fintech companies often use aggregators like Plaid or MX to access customer accounts at major financial institutions like JPMorgan. So far, banks haven’t charged fintech companies, but that could change. Aggregators are widely expected to pass on the new fees to fintech customers, and some may even pass the costs on to consumers.
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