JPMorgan’s Data Fees Shake Fintech: PayPal Takes a Hit

JPMorgan Chase has dealt a serious blow to the fintech sector. The largest US bank plans to charge fees for access to customer data in the future – a move that could fundamentally threaten the business models of many payment service providers. PayPal has already felt the painful effects of this new reality.

Fintech shock: When data suddenly costs money

The news hit the markets like a bolt of lightning. JPMorgan Chase, the heavyweight among US banks, is turning off the money tap: Fintech companies will now have to pay for customer data that was previously available free of charge. For payment service providers like PayPal, this means a drastic deterioration in their cost structure.

The core issue lies in the fact that a large number of fintech business models depend heavily on having free access to customer banking data. The introduction of sudden fees for this data could have a significant negative impact on their profit margins and potentially disrupt entire value chains. The stock market responded immediately—and with harsh consequences.

Should investors sell immediately? Or is it worth getting started with PayPal

PayPal quickly became the primary target of investor backlash in the market. On Friday, the company’s stock experienced a sharp decline, dropping by 5.7 percent and ending the day as the worst performer in the entire S&P 500 index.

The exceptionally high trading volume further emphasized the intense selling pressure directed at PayPal shares.

Technical picture deteriorates dramatically

The recent crash has also exacerbated the technical situation. PayPal is now trading below key moving averages, confirming its clear downtrend. Particularly threatening: A possible “death cross”—if the 50-day line falls below the 200-day line—could trigger further selling pressure.

The question remains: Can PayPal hold its own against the new cost structures or will the big bank offensive be the death knell for the fintech business model?

PayPal Stock: Buy or Sell?! New PayPal analysis from July 13 provides the answer:

The most recent figures released by PayPal make a clear and undeniable statement on the company’s current situation. As a result, shareholders are now faced with a pressing need to make a decision and take immediate action. The key question they must consider is whether it is wiser to buy more shares or to sell.

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(Featured image by Brett Jordan via Pexels)

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First published in boerse-express. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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