Visa has reportedly shut down its Open Banking business unit in the US amid a standoff between banks and fintechs over access to customer data.
Visa released an official statement to various media outlets stating: “We are focusing our open banking strategy in high-potential markets like Europe and Latin America.”
The global card giant’s Open Banking unit operates as a third party to facilitate the transferring of customer data from point-to-point.
Visa’s choice to detach itself from the US comes at a time when banks and fintechs are in dispute over fees relating to the access of customer data, as well as regulatory uncertainty.
US banks, such as JP Morgan Chase, are reportedly placing large fees upon fintechs for customer data. In its statement regarding the announcement of the rise in customer data fees, a JP Morgan Chase spokesperson said this is to “ensure we’re all making the necessary investments in the infrastructure that keeps our customers safe,” in July 2025.
A source close to the matter reportedly told Bloomberg Visa’s Open Banking US exit did not factor the increase in customer data fees by JP Morgan Chase.
Many US fintechs rely on customer data to tailor their digital products to new and existing customers, such as benefits and perks, investment, savings accounts, peer-to-peer transactions, and more.
Where the exit of Visa may further impact fintechs is due to the company acting as a third party, or intermediary, for the acquisition of customer data. These intermediaries are crucial in the acquisition process, connecting banks to fintechs to securely obtain the data.
How did this happen?
The US’ Open Banking policy shifted following President Trump’s ascension to office in January 2025.
The Consumer Financial Protection Bureau (CFPB) completed the final draft of Rule 1033 of the Dodd-Frank Act, the overarching framework for the regulation of customer financial data.
Rule 1033 would have enforced financial institutions to provide free, API-based access to consumer data and authorised third parties or intermediaries, enabling greater transparency and freedom for consumers to control their data.
However, Trump’s de-regulation policy seen across crypto and buy now, pay later, transferred over into Open Banking, as he oversaw the CFPB’s repeal of Rule 1033.
Large US banks had initially criticised the rule, citing relevant fees attached to customer data as necessary for the safeguarding of customers. Now repealed and no regulatory enforcement in place as of yet, banks are able to determine the fee price.
It is likely that fintechs will respond to the CFPB’s invitation for feedback. The notice was published on August 22 and requires comments for feedback within 60 days from the notice’s publication date.
In the notice, the CFPB highlighted four key areas for response:
- The proper understanding of who may serve as a “representative” of the consumer.
- The “optimal” approach to the assessment of fees to defray the costs incurred by a “covered person” in responding to a request from a customer.
- The threat and cost-benefit pictures for data security associated with compliance with Section 1033—the section of Dodd-Frank that requires so-called “open banking.”
- The threat of data privacy issues associated with Section 1033 compliance.
