Visa has shut down its open banking business in the US, citing regulatory uncertainty over consumer data rights and the prospect of higher fees for customer information, according to people familiar with the matter.
Bloomberg reported that the payments giant has closed its operations that provided technology enabling third parties, including financial technology firms, to access customer account data.
The people requested anonymity as the matter is private.
The move comes as the future of a rule prohibiting banks from charging for access to customer data remains unclear.
Under President Donald Trump, the Consumer Financial Protection Bureau (CFPB) had sought to overturn the measure, which compels banks to share data with other lenders and financial services providers free of charge.
The regulator is now revising the rule.
Responding to a request for comment, a Visa spokesperson said the company is concentrating its open banking strategy “in high-potential markets like Europe and Latin America.”
On an earnings call in July, Visa Chief Executive Officer Ryan McInerney said those regions offered the “greatest potential” for open banking.
Visa’s decision comes as JPMorgan Chase & Co. prepares to impose charges that could reach hundreds of millions of US$ for access to customers’ bank account information, Bloomberg reported in July.
The move has drawn criticism from fintechs that argue their operations depend on access to such data.
One source said Visa’s decision was made independently of JPMorgan’s plans.
The development marks a sharp turn from five years ago, when Visa attempted to acquire Plaid, a company connecting bank accounts to fintech applications, for US$5.3 billion.
That deal collapsed in 2021 after the US Justice Department raised antitrust concerns.
Visa later acquired Swedish Plaid rival Tink for about US$2 billion, describing it at the time as a “strong partner with whom we can accelerate innovation in open banking.”
The open banking landscape in the US has shifted since then.
After the CFPB finalised the rule in the last months of the Biden administration, banking lobby groups immediately filed lawsuits to block it, citing concerns over fraud and liability.
Supporters, however, argue the measure promotes wider consumer choice, competition, and improved data security. Earlier this week, the CFPB began steps to rewrite the rule.
Visa’s main competitor, Mastercard, continues to offer open banking services and “remains committed to the business,” its Chief Financial Officer Sachin Mehra said in an interview last month.
Featured image credit: Edited by Fintech News America, based on image by Who is Danny via Freepik
