BASINGSTOKE, U.K.– Global Open Banking payments transaction values will exceed $330 billion globally by 2027; up from $57 billion in 2023, according to a new study from Juniper Research.
The report, Open Banking: Opportunities, Competitor Leaderboard & Market Forecasts 2023-2027, predicts that Open Banking’s simplicity of use versus alternatives the development of new use cases, will drive adoption, such as with card payments.
The research anticipates that efforts to educate consumers about the security and benefits of Open Banking will “catalyze market growth; helping alleviate common consumer fears and misconceptions regarding the potential misuse of financial data to which third parties are granted access,” according to Juniper Research.
“Open Banking must overcome consumers’ security fears surrounding the sharing of financial data if it is to fulfil its strong growth potential,” said 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
In releasing its findings, Juniper said 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 payments to pay tax bills, as introduced in the U.K.,” the company said. “As bill payments using Open Banking expand outside of the U.K., 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,” Juniper continued. “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.”
The white paper can be found here.
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