Updated: This post previously stated that the renewed data sharing agreement does not cover account access for payments, which was incorrect. Plaid has clarified that the data sharing agreement covers all types of data sharing, including payments.
Late yesterday, JPMorgan Chase and Plaid announced that they have mutually agreed to renew their data access agreement that dictates how Plaid is able to pull data on their shared customers from JPMC.
The renewed agreement’s most notable feature is a new pricing structure. Plaid will now pay JPMC to facilitate data access for its fintech clients. Aside from the financial terms, the deal also sets commitments from both sides to ensure consumers can access their data securely. Additionally, the firms have pledged joint investment in innovation and technology to make data sharing faster, safer, and more efficient.
Plaid’s take
Since JPMC initially signaled in July that it plans to charge aggregators to access consumer data, there have been many conversations on both sides of the debate regarding why or why not banks should charge for data access. Given the multiple stakeholders involved, including banks, fintechs, aggregators (like Plaid), and end consumers, there are multiple viewpoints on what charging for data access should look like.
As a central player in this debate, Plaid has a lot to lose (or win) depending on how fees are assessed. To that end, Plaid COO Eric Sager emphasized the firm’s willingness to collaborate with JPMC to preserve the consumer experience: “We have always believed consumers should have the right to access and share their own financial data, and JPMorganChase has been a partner in that effort,” said Sager. “This extended agreement ensures ongoing access for the millions of Chase customers who rely on Plaid every day to connect with the products and services they trust.”
To back up those assurances, Plaid outlined three key takeaways from the renewed agreement:
- Continuity is guaranteed
Plaid says existing JPMC customers can keep accessing fintech services without disruption.- No pricing changes for now
Current contracts and customer fees remain unchanged.- Advocacy continues
Plaid will keep pushing for consumer data rights in the CFPB’s 1033 rulemaking.
This agreement is likely to set a precedent in future cases with other large banks and aggregators, shaping not only how data is shared but also how payments are initiated and monetized. As more institutions move to formalize similar arrangements, the industry will be watching to see whether these pricing structures trickle down to smaller players and, ultimately, to consumers. With the CFPB’s 1033 rulemaking still in flux, JPMC and Plaid’s renewed deal may serve as both a template and a test case for the next phase of open banking in the US.
Photo by Pixabay
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