Visa Ends U.S. Open-Banking Operations as Data Tensions Rise

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Payments processor Visa has closed its open-banking business in the United States, sources familiar with the matter told Reuters, marking a significant setback in efforts to expand consumer access to financial data. The move comes amid growing friction between banks and fintech companies over the control and pricing of customer information.

Visa’s U.S. open-banking unit provided tools to fintech companies, enabling smoother customer sign-ups and faster money transfers. Open banking, which allows licensed third parties to access financial data securely, has gained momentum in Europe under regulatory mandates. However, in the U.S., adoption has been largely driven by private agreements between banks and fintechs, leaving the sector without standardized rules.

The closure follows heightened disputes over data access fees. In July, Bloomberg reported that JPMorgan Chase informed fintechs they might face substantial charges to obtain customer data. Similarly, PNC Financial CEO Bill Demchak stated that his bank was considering similar measures.

Banks justify such fees as necessary to cover the costs of safeguarding sensitive consumer information and maintaining data infrastructure. Fintech firms, however, argue that customers own their own financial data and that excessive fees could stifle competition and innovation in the sector.

Industry observers have noted that these tensions could have broader implications for consumer financial rights. Alex Rampell, general partner at venture capital firm Andreessen Horowitz, compared the potential fees to “Operation Chokepoint 3.0,” referring to historical regulatory actions that restricted certain businesses’ access to financial services. Rampell’s remarks highlight concerns that new cost barriers could limit consumer choice and access to digital financial tools.

Despite these challenges, regulatory efforts in the U.S. are evolving. Last Thursday, the Consumer Financial Protection Bureau (CFPB) announced a review and planned revision of rules governing how consumers control the sharing of their personal data between banks and fintech companies. The initiative aims to provide clearer guidance for financial institutions and technology providers, potentially shaping the future of open banking in the United States.

Visa’s decision to close its U.S. open-banking unit was first reported by Bloomberg News. While the company continues to operate globally, the U.S. exit underscores the unresolved tensions between traditional financial institutions and technology-driven challengers in a market increasingly defined by data access and consumer rights.

As open banking develops, the debate over data ownership, privacy, and fees will likely remain central to U.S. financial policy. Both fintech innovators and traditional banks will need to navigate regulatory updates carefully, balancing consumer convenience with security and operational costs.