Fintech Stocks Slip As JPMorgan Plans Data Access Fees, But Affirm Defies The Trend

Several payments and fintech stocks such as Affirm Holdings Inc. AFRM, PayPal Holdings Inc. PYPL and Mastercard Inc. MA are under pressure this week after JPMorgan Chase & Co. announced it will begin charging significant fees for access to customer bank account data.

What To Know: Investors are reacting to JPMorgan’s pricing sheets, which were sent to major data aggregators like Plaid and MX. These companies serve as the intermediaries between banks and fintech platforms, facilitating the flow of customer data that powers services such as payments, lending and digital wallets. JPMorgan now plans to charge fees that vary based on how companies use the data, with the steepest charges targeting payment-focused firms, according to Bloomberg.

Historically, fintechs have accessed this data for free. JPMorgan argues that it has invested heavily in secure infrastructure to protect consumers and says the new fees reflect the cost of maintaining that system. However, for many fintech firms, including crypto wallets, trading apps and buy-now-pay-later platforms like Affirm, the added costs could erode margins and challenge existing business models.

Affirm's modest gain may reflect investor belief that the company is less exposed to the near-term effects of JPMorgan's fee structure compared to peers like PayPal. Still, Affirm's operations rely on access to bank account information for underwriting and repayment and the company could face pressure if aggregators pass along these new costs.

As negotiations continue and the future of open banking in the U.S. remains unresolved, fintech investors are bracing for a period of heightened volatility and strategic recalibration.

Price Action: Affirm shares were down 4.87% at $65.20, PayPal shares were down 5.27% at $71.71 and Mastercard shares were down 2.41% at $549.96 at the time of writing, according to Benzinga Pro.

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