COME 2026, OPEN BANKING-FACILITATED PAYMENTS TO EXCEED US$116 BILLION - JUNIPER RESEARCH

KUALA LUMPUR, Nov 1 (Bernama) -- A new Juniper Research study has found that the value of global payment transactions facilitated by Open Banking will exceed US$116 billion in 2026, from just under US$4 billion in 2021. (US$1 = RM4.146)

This extraordinary growth rate of over 2,800 per cent 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, according to a statement.

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 reduce risks of disintermediation.

The new research, Open Banking: Key Opportunities, Vendor Strategies & Market Forecasts 2021‑2026, found Europe would account for over 75 per cent of Open Banking payments users globally in 2026; demonstrating the headstart that PSD2 has given this market.

However, the report recommends that API vendors look beyond regulatory minimum requirements to develop advanced use cases such as aggregation of additional products, including loans, credit cards and mortgages, as awareness builds.

In addition, the research found recent governmental support within the US would stimulate the growth of Open Banking, and the market will require payment players to develop new capabilities quickly to capitalise.

Juniper Research provides research and analytical services to the global hi-tech communications sector; providing consultancy, analyst reports and industry commentary.

-- BERNAMA