Fintech Stocks Decline as JPMorgan Tightens Data Rules

Fintech names took a hit Friday following reports that JPMorgan Chase plans to restrict data access to third-party platforms unless they agree to new data-sharing terms.

Both PayPal (PYPL) and XYZ Corp fell sharply:

• PayPal (PYPL) closed at $72.15, down $3.55 or 4.69%
• XYZ Corp dropped $3.22 to $65.54, also down 4.68%

JPMorgan is reportedly moving away from traditional “screen scraping” methods and shifting toward API-based access, which could come with added costs or compliance requirements for fintech platforms. Firms like PayPal and XYZ rely on direct access to consumer banking data to power payment services, financial tracking tools, and more.

This change introduces uncertainty over future operating costs and could limit the ability of these platforms to provide seamless services—especially if other banks follow suit. Investors appear concerned that the new model may reduce margins or slow user growth.

The drop follows a rough year for fintech broadly, with growth slowing and competition increasing across digital payments and financial services. Today’s declines add to pressure heading into earnings season, where guidance and user metrics will be closely watched.

The fintech space is now on alert—not just for profits, but for how quickly access to essential customer data may tighten.