Global payment transactions facilitated by open banking are expected to exceed $116bn by 2026, rising from $4bn in 2021.
The prediction is part of Juniper Research’s latest report, Open Banking ~ Levelling the Banking Playing Field.
It claims that the 2,800% growth of the sector will be driven by increasing user awareness of open banking features, as well as increased deployment across Europe as vendors build on PSD2 APIs.
As a result, Europe is predicted to account for over 75% of open banking payment users by 2026.
With a huge opportunity ahead, Juniper urges API vendors to go beyond regulatory minimum requirements to build advanced use cases, such as aggregation of additional products, such as loans, credit cards and mortgages.
Research co-author Damla Sat said, “While PSD2 is a great starting point, it is not the end goal for Open Banking – supportive regulation must be a platform for much greater innovation. The race is on for vendors to build the most compelling capabilities for the future of Open Finance.”
To support adoption in the US, the report states governmental support will stimulate the growth of open banking.
There is definitely room for growth in the open banking sector. A recent report from Yolt Technology Services claimed that 40% of banking customers were not using an open banking solution.
In its survey 33% said they were supportive of open banking products, while an additional 30% wanted to see my financial products leverage open banking to make it more mainstream.
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