- 1Block says the vast majority of Borrow volume is underwritten using only Cash App data.
- 2Less than 1% of U.S. BNPL GMV is paid back via ACH, the company said.
- 3Block says its historical fees paid to data aggregators have been de minimis.
Block says the fees JPMorgan intends to charge fintechs for access to customer bank account data will not affect Borrow, Cash App's short-term consumer loan program. The reason, according to the company, is that Cash App largely does not need that data.
Block's statement
In a statement responding to the JPMorgan announcement, the company said it has been deliberate in how it builds products, using internal data where it can. It offered two data points so far:
- Most Borrow volume has been underwritten on Cash App data alone.
- Less than 1% of U.S. buy-now-pay-later gross merchandise volume is paid back via ACH.
Block added that it could not comment on the future, but that historically the fees it pays to data aggregators have been de minimis.
The backdrop
The comments follow reports that JPMorgan intends to charge fintechs for access to customers' bank account data. Block's position is that Borrow, built largely on Cash App's own data, sits outside the reach of those fees.
Source reporting: deBanked.
