KUALA LUMPUR, Feb 13 (Bernama) -- Open Banking payments transaction values will exceed US$330 billion globally by 2027, up from US$57 billion in 2023, according to a new Juniper Research study. (US$1=RM4.335)
Titled Open Banking: Opportunities, Competitor Leaderboard & Market Forecasts 2023-2027, the report predicted that the development of new use cases such as bill payments via Open Banking, will drive adoption, given its simplicity of use versus alternatives, such as card payments.
The research anticipated that efforts to educate consumers about the security and benefits of Open Banking will catalyse market growth, helping alleviate common consumer fears and misconceptions regarding the potential misuse of financial data to which third parties are granted access.
Its research author, Jordan Rookes said in a statement that Open Banking must overcome consumers’ security fears surrounding the sharing of financial data if it is to fulfil its strong growth potential.
“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,” he added.
The research also expects the development of new use cases will be instrumental to ensuring that Open Banking fulfils its potential.
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.
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.
-- BERNAMA
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