Visa has closed its open-banking business in the US due to regulatory uncertainty over consumer data rights and potential new fees for accessing customer information, sources said.

The payments company previously offered technology for third parties, such as fintech firms, to access customer account data.

Visa will now focus its open-banking strategy on Europe and Latin America, which it views as high-potential markets.

The move follows shifts in the US open-banking landscape, including a pending rule that could ban banks from charging for customer data and recent lawsuits from banking groups over new regulations.

The exit is unrelated to JPMorgan Chase’s recent plan to charge fees for access to customer bank data.

Visa had attempted to buy Plaid for US$5.3 billion in 2020 but abandoned the deal after antitrust scrutiny. It later acquired Swedish open-banking platform Tink for about US$2 billion.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Regulatory clarity drives corporate strategy more than market size

Visa’s decision to abandon the US open-banking market while focusing on Europe and Latin America reveals how regulatory uncertainty can override potential market size advantages.

Despite the US representing Visa’s largest market, CEO Ryan McInerney specifically cited Europe and Latin America as having the “greatest potential” for open banking1. This strategic pivot comes as the Consumer Financial Protection Bureau works to rework open-banking rules that were initially set to be vacated under the Trump administration1.

The contrast becomes clear when comparing regulatory environments: Europe has established comprehensive open banking frameworks through PSD2 regulations, while the US currently relies on private agreements between banks and fintechs for data sharing2.

This strategy shows how even dominant financial players like Visa prioritize operational certainty over market penetration when faced with unclear rules that could fundamentally change their business model.

2️⃣ Corporate acquisition strategies can reverse quickly when market conditions shift

Visa’s exit from US open banking represents a dramatic reversal from its aggressive expansion just five years ago, when it attempted to acquire Plaid for $5.3 billion1.

After that deal was blocked by antitrust concerns in 2021, Visa pivoted to acquiring Swedish competitor Tink for $2 billion, with executives stating Tink would help “accelerate innovation in open banking”1.

Recent Visa developments