SAN FRANCISCO — Visa has shut down its open banking business in the United States.
In a statement to both Bloomberg and Reuters., a Visa spokesperson said, “We are focusing our open banking strategy in high-potential markets like Europe and Latin America.”
The reports noted that the decision comes amid regulatory uncertainty around consumer banking data access and as at least two banks weigh charging fees to fintechs for access to customers’ data, as the CU Daily has reported. Bloomberg reported that while JPMorgan Chase has announced plans to impose fees, an unnamed source said those plans were not a factor in Visa’s move.
In July, Bloomberg reported that JPMorgan told financial technology firms it would begin charging for access to customer banking data, with fees potentially reaching hundreds of millions of dollars and threatening parts of the fintech sector’s business model.
CFPB Seeking Comment
The Consumer Financial Protection Bureau last week said it is seeking public comment to guide implementation of Rule 1033, the open banking rule. The agency said it wants feedback on fees, data security and privacy.
The rule was finalized Oct. 22 during the Biden administration but immediately faced a lawsuit arguing it jeopardizes the security and privacy of consumer data. After leadership changes under the Trump administration, the CFPB told a judge on July 29 it would undertake an “accelerated rulemaking process” to revise the rule and asked the court to pause the lawsuit, saying revisions could make the case unnecessary.
