Payment processor Visa has reportedly closed down its Open Banking unit in the US due to tensions rising between banks and fintech companies over access to customer data.
Visa’s Open Banking business offers tools for fintech companies to gain simplified access to bank data, supporting them in providing optimal sign-ups and money transfers. Yet, disputes between banks and fintech firms have raised doubts about the future of Open Banking in the US. Now, people familiar with the matter cited by Bloomberg News said that Visa has decided to shut down its Open Banking unit due to the current landscape.
Open Banking in the US
Last month, more specifically in July 2025, JPMorgan Chase announced its plans to charge fees on fintech companies that wanted access to its customer bank account data. Other financial institutions, such as PNC Financial, also stated their plans to consider similar moves. Banks think that these fees are required to recover the cost of safeguarding and providing customer data. On the other hand, fintech firms argue that banks should not be allowed to charge for data that belongs to customers, and the fees would negatively impact their business.
Furthermore, regarding this move, Visa stated that the company is currently focusing its Open Banking strategy on high-potential markets such as Europe and Latin America. Open Banking has gathered significant traction in Europe, with regulators requiring banks to share data with licensed third parties. The US, however, does not impose such rules, leaving the adoption to private agreements.
Now, efforts to refine the framework in the US are ongoing, with the Consumer Financial Protection Bureau (CFPB) recently revisiting its Open Banking regulations, allowing consumers to have more control over their data sharing with banks and fintech companies. The decision came as a response to industry pressures and legal issues, aiming to scale competition and consumer choice in the market.
