Visa Shuts US Open Banking Business
- open banking space, a move reported Friday (August 22) by Bloomberg and Reuters.
- While the timing of Visa's exit coincides with discussions around data access fees, sources indicate that JPMorgan Chase's plans to charge for customer data were not a direct...
- The Consumer Financial Protection Bureau (CFPB) is currently seeking public comment to inform its implementation of Rule 1033, the open banking rule.
Visa Exits U.S. Open Banking Amid Regulatory Uncertainty
Table of Contents
Published August 22,2025
The Retreat from Open Banking
Visa has ceased operations in the U.S. open banking space, a move reported Friday (August 22) by Bloomberg and Reuters. The decision signals a strategic shift for the financial technology giant, focusing its open banking efforts on markets in Europe and Latin America, according to a Visa spokesperson. This comes at a pivotal moment, as the future of data access within the financial sector remains clouded by evolving regulations and potential new fees.
JPMorgan chase and the Data Access Debate
While the timing of Visa’s exit coincides with discussions around data access fees, sources indicate that JPMorgan Chase‘s plans to charge for customer data were not a direct factor in the decision. However, JPMorgan’s move, first reported in July, to begin charging FinTechs for access to customer bank data could substantially impact the FinTech landscape, potentially generating hundreds of millions of dollars in new revenue but also threatening business models reliant on free data access.
CFPB Revisiting Open Banking Rules
The regulatory landscape is in flux. The Consumer Financial Protection Bureau (CFPB) is currently seeking public comment to inform its implementation of Rule 1033, the open banking rule. Announced in october 2024 during the Biden management, the rule faced immediate legal challenges claiming it jeopardized consumer data security and privacy. following a change in CFPB leadership, the agency initiated an “accelerated rulemaking process” on July 29, 2025, requesting a stay of the lawsuit while it revises the rule. recent reports suggest the CFPB is now considering different fee models,a departure from the previous prohibition on such charges.
Consumer Sentiment and Adoption
Despite potential benefits, consumer adoption of open banking remains low. A recent PYMNTS Intelligence report,”Consumer sentiment About Open Banking Payments,” found that while 46% of consumers expressed a willingness to use open banking payments, only 11% have actually done so. This gap highlights the need for increased consumer education and trust in the security and privacy of these systems.