Visa Pulls Open Banking Business in US, Eyes High-Potential Markets

Visa has shut down its open banking business in the US and is redirecting resources to "high-potential markets" like Latin America and Europe. This move has sent shares down fractionally. Visa is concerned about regulatory uncertainty and potential fees for access to bank data in the US. However, a partnership with Lithic may help stem a decline in the company's value. Analysts have a Strong Buy consensus rating on V stock, with an average price target of $399.09 per share implying 14.13% upside potential.

Visa Inc. (NYSE: V) has announced the closure of its US open banking unit amid regulatory uncertainty and potential new fees for accessing customer information. The move, effective immediately, comes as the payment network's open banking operations provided technology that allowed consumers and businesses to access financial information and transfer funds across different banks. Visa was one of the first major payment networks to enter the US open banking market [1][2].

The decision to close the US open banking unit follows a period of regulatory uncertainty. In July, JPMorgan Chase (JPM.N) informed fintechs that they would have to pay potentially hefty fees to access its customer data, a move that has sparked debate over the cost of safeguarding and delivering customer information [2]. PNC Financial (PNC.N) CEO Bill Demchak has also indicated that his bank is considering similar moves [2].

On Thursday, the U.S. Consumer Financial Protection Bureau (CFPB) initiated a rewrite of its regulations governing consumer control over the sharing of their personal data between banks and fintechs, adding to the uncertainty in the sector [2]. This regulatory shift comes as the CFPB seeks to rework the rules governing open banking, which had initially been finalized under the Biden administration [3].

Visa’s decision to close its US open banking unit was made independently of JPMorgan’s change in strategy, according to people familiar with the matter [3]. The company has shifted its focus to high-potential markets like Europe and Latin America, where open banking has greater potential [3].

Visa’s biggest rival, Mastercard Inc., continues to offer open-banking services and remains committed to the business, as stated by its Chief Financial Officer Sachin Mehra [3].

The closure of the US open banking unit has sent Visa's shares down fractionally, reflecting investor concerns over the potential impact on the company's revenue streams. However, Visa's partnership with Lithic, a leading card issuing and processing platform, may help stem a decline in the company's value. The integration of Visa's ALM system with Lithic's VCPE API enables near real-time processing of premium program enrollments, enhancing program profitability and cardholder experience [3].

Analysts have a Strong Buy consensus rating on V stock, with an average price target of $399.09 per share, implying 14.13% upside potential [4].

References:
[1] https://www.ainvest.com/news/visa-ends-open-banking-unit-regulatory-uncertainty-2508/
[2] https://www.reuters.com/business/finance/visa-shutters-us-open-banking-unit-data-fight-heats-up-bloomberg-news-reports-2025-08-22/
[3] https://www.bloomberg.com/news/articles/2025-08-22/visa-abandons-open-banking-in-us-as-data-access-debate-rages
[4] https://www.nasdaq.com/articles/visas-alm-integrated-aid-lithic-real-time-premium-card-enrollment