Visa has shut down its U.S. open banking unit amid a battle over customer data access that has stalled efforts to build a national open banking platform. The company said it will instead focus on open banking initiatives in Europe and Latin America, where regulators have allowed banks to provide data to third parties. Visa’s spokesperson said, "We are focusing on open banking strategies in markets that could be like Europe and Latin America."

The move marks a retreat from the U.S. market. In 2020, the company attempted to acquire data aggregator Plaid for $5.3 billion, but it abandoned the deal in early 2021 after the Department of Justice blocked it over trust concerns. Visa later bought Swedish fintech Tink for €1.8 billion, giving it immediate access to thousands of European banks. In Europe, the second Payment Services Directive (PSD2) requires banks to open customer accounts to non‑bank providers since 2018. The UK has continued to develop open banking, with banks testing API performance. Brazil has rapidly built an open finance framework, with its central bank reporting over 42 million users under its program and billions of transactions processed annually via the Pix payment rail.

In contrast, the U.S. lacks a similar regulatory framework. Fintechs must negotiate data sharing agreements with each bank. Tensions have escalated recently. In July, Bloomberg reported that JPMorgan Chase offered a pricing model to fintech payment firms to access customer data, charging up to $1.25 for each new connection. PNC’s chief financial officer Bill Demchak said the bank was considering a similar approach. Banks argue the data sharing covers security costs and data provision, while fintechs counter that banks profit from customer data. Andreessen Horowitz partner Alex Rampell compared the scheme to "Operation Chokepoint 3.0," a reference to a decade‑old regulatory crackdown that forced banks to release certain data. Banks had previously complied with Section 1033 of the Dodd‑Frank Act, which required banks to provide customer data free of charge, but new leadership has begun to shift the policy, leaving uncertainty.

Visa’s decision signals that investing in Europe and Latin America will deliver unexpected returns compared to entering the unresolved U.S. regulatory battle.

Visa Pulls Plug On U.S. Open Banking Unit As Bank–Fintech Tensions Flare

Visa has shut down its U.S. open banking unit amid escalating disputes over customer data access. The company will instead concentrate on open banking initiatives in Europe and Latin America, where regulatory frameworks allow banks to share data with third parties. Visa’s decision follows a failed attempt to acquire Plaid and a successful purchase of Swedish fintech Tink. U.S. fintechs face a fragmented data‑sharing landscape, while banks are pushing back on new pricing models for data access.