Bank Drama for PayPal, Square After Wells Fargo Bows Out

For more than two decades, Wells Fargo was a juggernaut in a behind-the-scenes business that supported some of the biggest payments companies in the world. The bank’s abrupt exit from that market this year has left a major hole.

Block’s Square, for instance, is still hunting for a replacement for Wells Fargo to work on credit card transactions, according to people familiar with the relationship. Square also works with JPMorgan Chase, but it needs a second bank as a backup to avoid service disruptions. And banks have different appetites for the types of transactions they’re willing to process.