# The Big Winners Of Open Banking
Published: 2022-02-28
Category: Finance
Category URL: https://business.express/category/finance/
Meta Title: The Big Winners Of Open Banking
URL: https://business.express/the-big-winners-of-open-banking/

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_**Open**__**Banking**_ **_is taking the financial industry by storm, and the rising competition is driving the adoption of the technology by PSPs, merchants, fintechs, and consumers._**

**February 22, 2022.** Openbanking, an infrastructure that enables secure sharing of financial information, is experiencing a surge in activity. The number of successful [API calls](https://u7061146.ct.sendgrid.net/ls/click?upn=4tNED-2FM8iDZJQyQ53jATUf38qgTQVGRaQ7Ax-2BKHJT14HFqVD8-2B8nx4apR4gOnL4BfRSukArjZxtwGafsSIqrGA-3D-3DqqjB_Z6QTZ0ZRsFdy0Jxbjz89iwPmgL1OHfaAHn-2FehA7aSa2ghjYUhE90bx5elgfAatoteWYYtO6Z8rVfTOkkuKryM2zzZagmPbqI1-2F-2FBmnooiRbBEBFyk9nvvVzSTPwvPh4uxMNGRMGrarDcpzpIrr7dCoCU1BVUI9sQSYEqZyGm7QJypi3fEmKFumy6-2F97sqEEv4QUHivp7G5PfSTH0ogxTPSN-2FvvgJE-2BXmdQIaqSNZyVVsKO6-2FaPM9vn1ROe7VRDPYMFme3CNkKG5uRXyApxvN8AhiEkLdzQv4NzV3rCpmasZwqlVZ03jsVUdEjAXSm4Lur-2FtRqsAGCkJGw9YQu00GbzPAuPSMZBCW3-2FA49xloMm0-3D), a metric used to measure the number of operations executed on the OpenBanking network, has increased from 66.8 million in 2018 to almost 5.8 billion in 2020 in the UK alone. And while globally 280,000 OpenBanking[payment transactions](https://u7061146.ct.sendgrid.net/ls/click?upn=4tNED-2FM8iDZJQyQ53jATURgAEJ0TbOn8-2FKZlt1qFXoEp2cxz5mzktjSZLqwWAAZoRl63ieGmBc0x4egXkrYgyS5o6M5QkU0LiNXueXkLFNA-3DTdy8_Z6QTZ0ZRsFdy0Jxbjz89iwPmgL1OHfaAHn-2FehA7aSa2ghjYUhE90bx5elgfAatoteWYYtO6Z8rVfTOkkuKryM2zzZagmPbqI1-2F-2FBmnooiRbBEBFyk9nvvVzSTPwvPh4uxMNGRMGrarDcpzpIrr7dCoCU1BVUI9sQSYEqZyGm7QJypi3fEmKFumy6-2F97sqEEv4QUHivp7G5PfSTH0ogxTPQKyOt8BZmRErnXa4IEgfPfBu1NS8D3TVe-2BPVQXAYu2WERJ6s79E7jjJbtZR8puts0tJKbLB23vcdU8nys-2F-2BZZFjDOUPj-2FcEBNH7HPdRPtzvFyt2D9jlyerKLkfdfEIB6PU2Z96c9T4KjYKs4G2RCRA-3D) were made in July 2020, the number has risen to over 772.6 million in December 2021. This growth could be the tip of the iceberg as research shows that 76% of banks worldwide expect customer adoption and OpenBanking API usage to [increase by 50%](https://u7061146.ct.sendgrid.net/ls/click?upn=4tNED-2FM8iDZJQyQ53jATUZU-2FNgxlit7tf2Nv5PaN2ZatTsfsFBu8Qn9vJolHBhHxrK8kODe4Be4IKzH9jx46qdCoLBOLsrFpj23TA6IudoOLRilILKDbyNY3jKT-2BG4ICSDkdUBertg237wa3to4qP2-2FMUSR1atdnA6utqsa6mpiQ8-2Bn1KR-2BMwLFJgc2z2AKcNrVVUIdlwW54ixDtRGhcDrkov86dgxOAzsjRamprwB4-3DfVIg_Z6QTZ0ZRsFdy0Jxbjz89iwPmgL1OHfaAHn-2FehA7aSa2ghjYUhE90bx5elgfAatoteWYYtO6Z8rVfTOkkuKryM2zzZagmPbqI1-2F-2FBmnooiRbBEBFyk9nvvVzSTPwvPh4uxMNGRMGrarDcpzpIrr7dCoCU1BVUI9sQSYEqZyGm7QJypi3fEmKFumy6-2F97sqEEv4QUHivp7G5PfSTH0ogxTPfyLkON3Fue8GrtiPxb26ndM0knBtcGxwpblMonbuMG47fhxldKvwR-2F-2F7DD-2FJHvKVXEMcRFmY5Lz6pB2p0zySZEliIMyKcu-2Be7w6HktTeW-2BMKz0OKeiCAAT2Bu064xWzI5meT9UjdE71aHIt-2BrJgczI-3D) in the next three to five years.

Some are bold [to project](https://u7061146.ct.sendgrid.net/ls/click?upn=4tNED-2FM8iDZJQyQ53jATUZttSQV6iEzBiDnJokC0aAv1fzo5F3TWEAK73w6WeOogAq0ZorVAuB0ZxAde8-2F9j47K2xqAqlGMhAZo50C8pE1TSLsKmrH0vtW3k9FTNVdajCTI7QjAj1Ej0cgd4ZSmnqQ-3D-3D6B7H_Z6QTZ0ZRsFdy0Jxbjz89iwPmgL1OHfaAHn-2FehA7aSa2ghjYUhE90bx5elgfAatoteWYYtO6Z8rVfTOkkuKryM2zzZagmPbqI1-2F-2FBmnooiRbBEBFyk9nvvVzSTPwvPh4uxMNGRMGrarDcpzpIrr7dCoCU1BVUI9sQSYEqZyGm7QJypi3fEmKFumy6-2F97sqEEv4QUHivp7G5PfSTH0ogxTPdJswMKCKTo7cB4ieAkAFmjAX3a0OxafCNTZHVMbAcT05YVoeoFBQavtvQxu3K8Sxf-2FplDsa7D4Z-2FumnrwLXunt-2Fk508YqdQwK9AXqVi3kNWSYf4au6-2FO0EQo-2FlG1MPFNccvHCvWYyMKYWL3uCNYKGw-3D) the global value of payments made through OpenBanking will reach $116bn by 2026, compared to $4bn this year, highlighting that the sector is about to experience a significant acceleration.

This clear wave of OpenBanking has already revealed the winners—merchants, PSPs, and consumers are all set to benefit. Lower fees, increased convenience, and reaching otherwise untapped markets—all are benefits resulting from this wave.

Lower payment transaction fees are at the forefront of drivers for OpenBanking adoption by the merchants. Reports from the industry state that savings can reach up to 50% regarding [transaction expenses](https://u7061146.ct.sendgrid.net/ls/click?upn=4tNED-2FM8iDZJQyQ53jATUSQO5KTxYtOlwo0CCGZOJePrhhbyoWfEoBckqaBHEiVO-2FouGAbwoHpcX9DKzh44TxWrCJMWqZoaJkLVc-2BfkzkEh-2F6dobhHIVul99b8M3Wpwr8EFskolYGQ0aRghLZJYuRQ-3D-3DwDph_Z6QTZ0ZRsFdy0Jxbjz89iwPmgL1OHfaAHn-2FehA7aSa2ghjYUhE90bx5elgfAatoteWYYtO6Z8rVfTOkkuKryM2zzZagmPbqI1-2F-2FBmnooiRbBEBFyk9nvvVzSTPwvPh4uxMNGRMGrarDcpzpIrr7dCoCU1BVUI9sQSYEqZyGm7QJypi3fEmKFumy6-2F97sqEEv4QUHivp7G5PfSTH0ogxTPfdn2S0TKMTvpMx5zs-2BkDrPm3xQAoI42Eu51gXM8EsJL0XPnFokam-2FeqpNbUltoY3KXrqvSmUpi2GHoHE97SsY6ptLE-2F9He7b6hmEqjZ1D881LmoHtc724kWg-2FKIwH2s6AniYKuOeL5AgeTNaBV0umE-3D). “Whereas fixed and variable fees always accompany traditional card transactions, OpenBanking solutions in the form of Local Payment Methods merely have a much lower fixed fee. It’s not only cost-saving but also a way to better forecast operational costs,” explains **Frank Breuss, CEO of Nikulipe**.

As part of OpenBanking infrastructure, Local Payment Method Providers open doors for merchants to enter previously inaccessible markets. “Local payment offering, languages, and currencies are all needed to optimize merchant sales experience. However, linking payment methods in every country is a demanding task, it requires the local ‘know-how’ as well as the development of strategic partnerships, ” adds Frank Breuss. Essentially, e-commerce is now more connected between markets without significant risks or barriers.

Furthermore, OpenBanking solutions are inherently safer as they require multi-factor authentication from the customer’s banking side. In order to complete a transaction, customers also no longer need to use payment cards, which are prone to fraud or chargebacks.

“Global merchants expect payment service providers to localize across many countries or regions. Nikulipe was founded for this very reason—to bridge the gaps of global commerce through LPMs. This demand for global and local payments is creating clear winners, who are often naturally e-commerce focused,” adds **Breuss**.

The innovation aligns with adoption and expectations, with more than 64% of [mobile banking](https://u7061146.ct.sendgrid.net/ls/click?upn=4tNED-2FM8iDZJQyQ53jATUX5hQiTWQvWnSAk770hw9d2ohqJTlGgQPRDSAtWw03oXpJBedAEKGCE2ZduN1f2YOeRLMfLnnzEyrngCkiidivnDdd05mvJvm8Vvu0-2BRcxDUzwDQ_Z6QTZ0ZRsFdy0Jxbjz89iwPmgL1OHfaAHn-2FehA7aSa2ghjYUhE90bx5elgfAatoteWYYtO6Z8rVfTOkkuKryM2zzZagmPbqI1-2F-2FBmnooiRbBEBFyk9nvvVzSTPwvPh4uxMNGRMGrarDcpzpIrr7dCoCU1BVUI9sQSYEqZyGm7QJypi3fEmKFumy6-2F97sqEEv4QUHivp7G5PfSTH0ogxTPZKbntiMCGs3Wfe51IOgZy-2FETuYqMSGSAmbcvKtraw-2BNUmPj1nxitcCREp9RPlPcvTtjKmj0uiiGM9pjiDAhyx7wYzdhLWfaMMO59Uy2pB8WUeCFgqMbaNEzcvGqr-2F5bekKGrjvoq2JHX7npyXcnmXY-3D) users willing to pay via openbanking today if given the opportunity. As for the future of OpenBanking, the anticipated technology is gearing up to exceed expectations and benefit the parties involved in the ecosystem.


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