.png "Visa has shut down its US open banking business amid data access battles and regulatory uncertainty, shifting focus to Europe and Latin America where rules are clearer.")
I am Aadi, an MBA in marketing and finance with experience analyzing how regulation shapes fintech business models. Over the last few years I’ve tracked how payment giants like Visa adapt to new data laws, and this exit from US open banking might be one of the most telling shifts yet.
Summary:
Visa just shut down its open banking business in the United States. Behind the move are battles over who controls customer data, whether banks can charge fintechs for access, and how slow regulators have been to set clear rules.
- Visa closed its US open banking unit after years of uncertainty over data privacy and access rules [Reuters]
- Banks like JPMorgan and PNC are exploring hefty fees for fintechs to use consumer data, sparking tension [Pymnts]
- Fintechs argue those fees block innovation since data technically belongs to the customer [Bloomberg]
- Visa will now prioritize Europe and Latin America where regulations are clearer and more supportive [AInvest]
- The Consumer Financial Protection Bureau has started revising US open banking rules, but clarity is still years away [Daily Star]
When Visa walked away from its US open banking business, it wasn’t just a corporate pivot. It was a signal that America’s fintech ecosystem is still stuck in a tug of war over who owns consumer data and who should profit from it.
Visa had offered tools that let fintech companies pull banking data to simplify onboarding and transfers. On paper, that meant faster account linking and smoother transactions. In reality, the business collided with a messy debate. Traditional banks argued that safeguarding data costs money and floated charges to cover it. JPMorgan warned fintechs about potential fees for access. PNC’s chief executive hinted at the same path.
Fintechs fired back. Their stance is that the data belongs to consumers, not banks. Charging startups to use it, they argue, throttles new business models and hurts competition. That push and pull left companies like Visa in limbo.
So Visa is moving where the rules are clearer. Europe’s open banking system is already backed by regulations, and Latin America is catching up with frameworks that encourage secure sharing. By contrast, the US is a patchwork. The Consumer Financial Protection Bureau only recently reopened the conversation, asking for feedback on fees, security, and privacy. But history shows how quickly this can get political. The Biden administration’s attempt at a rule faced challenges, and shifts under Trump leadership left companies unsure of what would stick.
For Visa, that uncertainty is not worth the risk. Its focus now returns to secure payments, cards, and international open banking markets. The retreat leaves fintechs and banks in the US facing the same old standoff. Can innovation move forward if the rules remain blurry. Or will the country fall behind markets that already built guardrails.
This isn’t just an American regulatory drama. It’s a reminder that data has become the new oil, and the fight over who controls it decides which business models thrive.
5 to Do and Don’t for Founders and Investors:
- Do watch how Europe and Latin America handle open banking. Their frameworks may predict where profits shift next.
- Do prepare for data access costs in the US. Even if the rules change, banks are unlikely to give it away for free.
- Don’t assume customer ownership arguments alone will win the debate. Regulation and bank lobbying carry real weight.
- Don’t expand products that rely solely on free data access without planning a fallback.
- Do treat data security as an investment, not a cost. In any market, consumer trust will make or break adoption.