Visa Partners with Tink to Pioneer Open Banking in the US
In a move poised to reshape the financial landscape, Visa has ushered in a new era of open banking in the United States through a strategic collaboration with Tink, a Swedish technology firm acquired by Visa for €1.8 billion in March 2022, according to Finextra.
Open banking, a concept gaining rapid traction globally, empowers consumers to securely share their financial data with trusted third parties, revolutionizing how individuals manage their finances and access innovative services.
Visa’s integration of Tink’s technology into the US market marks a significant milestone, enabling American users to seamlessly connect their accounts and grant authorized entities access to their financial information. This groundbreaking initiative promises to enhance financial transparency, foster competition, and fuel innovation within the banking sector.
In Europe, the partnership between Visa and Tink has already garnered acclaim, securing major collaborations with industry leaders such as Adyen and Revolut. Now, with the US launch, Visa has solidified data access agreements with key players on the merchant side, including Capital One, Fiserv, Jack Henry, Dwolla, and Max rewards, positioning itself at the forefront of the open banking revolution.
Accessible through a unified console, users can leverage the platform to perform a myriad of tasks, ranging from confirming bank account details to conducting real-time balance checks and accessing transaction data from a vast network of banks across the US. This streamlined approach promises unparalleled convenience and efficiency for consumers and businesses alike.
Visa’s CEO, Ryan McInerny, underscores the company’s commitment to driving innovation and fostering financial inclusion, stating, «Just about two years ago, we acquired Tink as we saw opportunity in open banking. Over those two years, we have been expanding our presence in Europe, winning deals with Adyen and Revolut. We’re now expanding open banking solutions through Tink into the United States.”
Despite the widespread adoption of open banking among US consumers, Visa’s recent survey revealed a glaring gap in awareness, with only 34 percent of respondents recognizing the full spectrum of benefits enabled by open banking services. In response, Visa has embarked on a comprehensive consumer education campaign to illuminate the transformative potential of open banking and empower individuals to harness its advantages.
As Visa and Tink spearhead the open banking movement in the US, the collaboration heralds a new chapter in the evolution of financial services, marked by greater connectivity, transparency, and empowerment for consumers and businesses alike.