Open Banking: Game-Changer or Hype?
Mobile shopping and mobile banking are quickly becoming the preferred method for consumers to make online purchases. While embedded cards, such as Apple Pay, are common, account-to-account payments are growing in popularity. Consumer groups that have low access to credit cards, prefer not to use credit functions, or feel that products such as BNPL (“Buy Now Pay Later”) meet their needs more than traditional card payments are increasingly turning to account-based payment methods. Merchants and billers want to ensure that they offer the customer’s preferred payment method and do so in a cost-effective manner. To what degree is open banking a real alternative to card payments, what kinds of products and services should financial institutions offer their clients, and how can businesses meet their customers where they want to be? This session will evaluate open banking’s progress in the U.S. and look to other markets to see where it could be headed.