Block: Potential JPM Bank Account Data Access Fees Will Have No Impact to Our ‘Borrow’ Model

Borrow, short-term consumer loan program by Cash App, will not be affected by fees JPMorgan intends to charge fintechs for bank account data access. That’s because Block’s Cash App doesn’t even need the data.

“Across Block we’ve been deliberate in how we’ve built products, leveraging internal data when we can to deliver value to our customers,” the company said in response to the JPM announcement. “For example, to date: the vast majority of Borrow volume has been underwritten using only Cash App data and less than 1% of U.S. BNPL GMV is paid back via ACH. While we can’t comment on the future, historically, our fees paid to data aggregators have been de-minimis.”