Juniper Research: Open Banking payments to exceed USD 116 bln by 2026

Tuesday 16 November 2021 14:21 CET | News

A new Juniper Research study has discovered that the value of global payment transactions facilitated by Open Banking will exceed USD 116 billion in 2026, from just under USD 4 billion in 2021. 

This growth rate of over 2,800% over the next five years will be driven by increasing user awareness of Open Banking features, supported by greater deployment within Europe, as vendors build on PSD2 (Second Payment Services Directive) APIs to deliver expanding services. The research identified Open Banking-facilitated payments, where payments are made directly from bank accounts, as a growing threat to the dominance of cards within ecommerce. 

While card payments are well established, leveraging permissioned access to bank accounts can reduce fraud risks due to strict KYC (Know Your Customer) rules. The research recommends payment providers partner with Open Banking API providers to reduce risks of disintermediation.

The new research, Open Banking: Key Opportunities, Vendor Strategies & Market Forecasts 2021 2026, found Europe will account for over 75% of Open Banking payments users globally in 2026; demonstrating the headstart that PSD2 has given this market. However, the report recommends that API vendors 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 research found recent governmental support within the US will stimulate the growth of Open Banking, and the market will require payments players to develop new capabilities quickly to capitalise. As such, we anticipate acquisitions and partnerships to intensify, so vendors can meet these evolving requirements quickly, rather than developing their own solutions over time.

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: Open Banking, KYC, study, account-to-account payment
Categories: Banking & Fintech
Countries: World
This article is part of category

Banking & Fintech

Industry Events