Fintech and crypto industries launch fight to block bank fees for customer data - The Information

Fintech and crypto industries launch fight to block bank fees for customer data - The Information

The fintech and crypto industries have launched a collective effort to challenge JPMorgan Chase's decision to charge fees for accessing customer banking account data. The move, announced last month, has sparked concern among industry executives and analysts, who fear it could cripple the growth of early-stage startups and limit consumer choices.

JPMorgan Chase's plan, which will charge fees for every transaction involving a crypto account or third-party service like Venmo, has been met with strong opposition from the fintech community. Executives have expressed concerns that the fees could make it economically impossible for many consumers to use stablecoins and crypto, potentially stifling innovation and consumer choice. One executive, who declined to speak on the record, estimated that the fees to access JPMorgan's API would be more than the revenue the company made in its 10-year existence.

The fees are also expected to be onerous for many early-stage fintechs, with one executive suggesting that they could require a 1000% price increase to cover the cost. Alex Rampell, a general partner at venture firm Andreessen Horowitz, echoed these concerns, stating that the fees are not about a new revenue stream but rather a means to "strangle the competition."

The impact of these fees is not expected to be as severe for more established fintechs like PayPal and Block, which have already negotiated agreements with the largest banks on a multi-faceted basis. However, the size of the fees remains uncertain, and some analysts believe that the impact could be significant.

The move by JPMorgan Chase comes as the fintech and crypto industries are already grappling with regulatory challenges. The Consumer Financial Protection Bureau's (CFPB) open banking rule, which was finalized in October, aims to make it easier for consumers to switch between financial service providers and requires banks to share data for free. However, the rule is currently being challenged in court by bank lobby groups.

JPMorgan Chase has defended its decision, stating that it has invested significant resources in creating a valuable and secure system to protect customer data. The bank has also argued that the fees are necessary to cover the costs of maintaining the infrastructure that keeps customers safe.

The response to JPMorgan Chase's decision has been swift and vocal, with industry executives and analysts expressing their concerns about the potential impact on innovation and consumer choice. Other banks, such as PNC Financial Services, are also considering similar fee structures, raising the possibility that the change could spread throughout the industry.

References:
[1] https://fortune.com/2025/07/16/jpmorgan-chase-fees-fintechs-plaid-finicity-crypto-wall-street-citigroup-bank-of-america-wells-fargo/