Open Banking-facilitated Payments to Exceed $116 Billion by 2026, as APIs Threaten to End Card Dominance

 Open Banking-facilitated Payments to Exceed $116 Billion by 2026, as APIs Threaten to End Card Dominance

BASINGSTOKE, England, November 01, 2021–(BUSINESS WIRE)–A new Juniper Research study found that the value of global payment transactions facilitated by Open Banking will exceed $116 billion in 2026, from just under $4 billion in 2021. This extraordinary 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…

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