JP Morgan's Plans to Charge for Consumer Data Access:
The forerunner for premium APIs?

Moshe Winegarten, Chief Revenue Officer, Ecommpay believes JP Morgan's decision to start charging fintech companies for access to customer bank account information represent a uniquely American approach that wouldn't be possible in Europe due to the region’s regulatory framework.

“Under PSD2 and open banking regulations in Europe, banks are prohibited from charging for mandatory API access. This has been both a blessing and a curse - while it democratised financial data access, it also meant banks couldn't monetise their infrastructure investments.

"However, JP Morgan's move highlights an interesting opportunity that European banks could explore: premium APIs. While basic regulatory-mandated data must remain free, banks could charge for enhanced datasets not covered by PSD2, or offer APIs that enable bank services to be embedded in third-party applications as a new sales channel.

"There's also a fascinating regulatory nuance worth considering. PSD2 stipulates that banks cannot discriminate between open banking payments and traditional transactions. This means if a bank charges for standard online transfers, they could theoretically charge for Payment Initiation Services (PISP) transactions too. While this seems unlikely in the UK's free banking environment, it could be viable in European markets where transaction fees are common.

"The real strategic question is whether other major US banks will follow JP Morgan's lead. If they do, the impact on crypto firms and fintechs could be significant, as they typically rely on data aggregators to access customer accounts.

"For European banks watching this development, the lesson isn't about charging for basic compliance - that ship has sailed. Instead, it's about finding creative ways to monetise the digital infrastructure they've built while staying within regulatory boundaries. The future lies in premium services and embedded banking, not gatekeeping basic data access."