Aug 22 (Reuters) - Payments processor Visa has

shut its open-banking business in the United States, Bloomberg

News reported on Friday, citing people familiar with the matter.

The business gives fintechs easier access to customer bank

data, helping them offer smoother sign-ups and money transfers.

Disputes between banks and fintechs over access to customer

data have fueled uncertainty in the sector.

A Bloomberg report in July said JPMorgan Chase ( JPM ) had

informed fintechs they would have to pay potentially hefty fees

to access its customer data. PNC Financial CEO Bill

Demchak has also said his bank was considering such a move.

Banks say such fees are necessary to recoup the cost of

safeguarding and delivering customer data, while fintechs argue

that banks should not be allowed to charge for data that belongs

to customers, and the fees would slam their business.

On Thursday, the U.S. Consumer Financial Protection Bureau

kicked off a rewrite of its regulations governing consumer

control over the sharing of their personal data between banks

and fintechs.

Visa did not immediately respond to a Reuters request for

comment on the Bloomberg report.

(Reporting by Niket Nishant in Bengaluru; Editing by Devika

Syamnath)