Imagine acquiring fees five times lower than what you pay now. That’s exactly what Open Banking promises. And yet, most people still pull out their cards at the checkout. Artsiom Liashanau, fintech expert, investor, and entrepreneur, explains the gap between economics and reality.
Key takeaway: Open Banking is no longer a niche topic. In mature markets, about 20% of users actively use it, and A2A payments are 40-85% cheaper than card acquiring. But the main barrier is trust. Open Banking doesn’t yet have the traditional chargeback mechanism that everyone is accustomed to with cards, and without it, the mass user isn’t ready to trust the new model.
Figures that are hard to ignore
In mature markets (UK, EU, Australia), about 20% of consumers and small businesses are already actively taking advantage of open data: they aggregate accounts, receive instant loans, and pay card-free.
In markets where the regulatory framework is still being developed, this figure barely reaches 11%.
The difference between these figures is a question of the existence of clear rules of the game. Where regulators have provided answers, the market is demonstrating dynamic growth – Artsiom Liashanau.
Why this should be interesting
A2A payments (Account-to-Account, direct transfers from account to account without a card) are changing the economics of acquiring:
- Merchant fees are 40-85% lower than with traditional card acquiring;
- The transaction is processed directly between accounts, without the involvement of card payment systems;
- Settlement speed is higher than with traditional card schemes.
This creates a huge gap that will sooner or later force the market to completely rethink its priorities.
So what’s the problem then
It’s a matter of trust. Card systems have taught us that any transaction issue can be resolved through the bank. Until open banking has a similarly clear consumer protection mechanism, it won’t be able to fully replace cards for the masses.
The key gap between a card and an A2A payment:
- A card has a chargeback. A clear mechanism for refunding money in the event of an error or fraud;
- A2A payments don’t yet have such a standardized mechanism;
- For the masses, confidence in a refund is a basic requirement for trusting the payment method;
- Without equivalent protection, Open Banking risks remaining a tool only for advanced users.
Where is the real value?
Companies that see Open Banking only as a threat to commission income are probably asking themselves the wrong question.
Payment companies should stop seeing Open Banking as a threat to transaction revenue. In fact, it’s a tool for transitioning to intelligent money management. The value isn’t in the transaction itself, but in the data that helps make it happen faster, cheaper, and more securely, says Artsiom Liashanau.
