Payments through open banking could end card dominance
Summary
According to a study from Juniper Research, the global value of payments made through open banking will be $116bn by 2026, signalling that the finance sector is on the cusp of a major acceleration in take-up. The study’s co-author, Damla Sat at Juniper Research, said: “While PSD2 is a great starting point, it is not the end goal for open banking – supportive regulation must be a platform for much greater innovation. Juniper Research recommends that API suppliers look beyond regulatory minimum requirements “to develop advanced use cases such as aggregation of additional products, including loans, credit cards and mortgages, as awareness builds”. The open banking revolution recently received a huge boost when card companies Visa and Mastercard made major acquisitions of fintechs in the sector. We want to grow fast, but we want to scale out in a way that we get a lot of customers that improve our technology.” Meanwhile, following its acquisition by Visa, Tink CEO and co-founder Daniel Kjellén said: “We have built something incredible and – at the same time – we have only scratched the surface,” he said.