A new study has found that global Open Banking payments transaction values will exceed $330 billion globally by 2027; up from $57 billion in 2023.
The report predicts that the development of new use cases, such as bill payments via Open Banking, will drive adoption, given Open Banking’s simplicity of use versus alternatives, such as card payments.
Educating Consumers Key
The research anticipates that efforts to educate consumers about the security and benefits of Open Banking will catalyse market growth; helping alleviate common consumer fears and misconceptions regarding the potential misuse of financial data to which third parties are granted access.
“Open Banking must overcome consumers’ security fears surrounding the sharing of financial data if it is to fulfil its strong growth potential, says research author Jordan Rookes.
“Accordingly, Open Banking vendors must educate consumers, and provide greater transparency surrounding data privacy and security by highlighting the procedures in place to protect financial data to ease security concerns and encourage greater adoption of Open Banking services when marketing their solutions.”
New Use Cases to Drive Growth
The research also predicts the development of new use cases will be instrumental to ensuring that Open Banking fulfils its potential.
One of the most promising new use cases is the ability to use Open Banking to pay tax bills, as introduced in the UK.
As bill payments using Open Banking expand outside of the UK, they are expected to account for more than $59 billion globally in transaction values by 2027.
Vendors in the Open Banking space must continue to invest in new high-potential Open Banking use cases, such as full integration within eCommerce marketplaces.
This will help both further develop the Open Banking market and attract a more sizeable user base; becoming more competitive in an increasingly saturated digital payments market.
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Source: Payments Cards & Mobile