Catenaa, Tuesday, August 26, 2025-Visa has closed its open-banking division in the United States as tensions grow between banks and fintechs over customer data access, sources said.
The unit provided tools enabling fintech firms to access bank data, simplifying account sign-ups and money transfers.
Its closure highlights rising disputes over fees banks may charge fintechs to access consumer information.
JPMorgan Chase reportedly warned fintechs of potentially high costs, and PNC Financial has considered similar measures.
Banks argue fees cover the expense of safeguarding and delivering customer data, while fintechs contend that consumers own the data and such charges hinder innovation.
Visa said it would focus its open-banking strategy on regions with established frameworks, including Europe and Latin America, where regulators mandate banks to share data with licensed third parties.
The United States lacks such comprehensive rules, leaving access to private agreements and fueling uncertainty over the sector’s growth.
US regulators are taking steps to clarify the framework.
The Consumer Financial Protection Bureau recently began revising rules to give consumers more control over sharing personal data between banks and fintechs.
Analysts say Visa’s exit from the US market may slow domestic open-banking adoption, although global expansion could offset some losses.
