👀 New Trends in Regional Payments: A Look at North America (🇺🇸➕ 🇨🇦)

👀 New Trends in Regional Payments: A Look at North America (🇺🇸➕ 🇨🇦)

In summary, open banking is gaining momentum. The authors of the article in “Payments Journal” reached this conclusion based on Ripple's report on trends within the evolving global payment environment.

➡️ Open banking involves banks providing approved third-party platforms access to their customers' accounts so that payment applications can exchange financial data. For consumers, this is undoubtedly convenient (because, at the very least, it is fast). The global open banking market is expected to exceed $130 billion by 2028.

➡️ Europe leads in open banking implementation. In 2023, account-to-account (A2A) payments in the UK🇬🇧 grew by 280% year-on-year.

➡️ Americans are quite conservative in this regard, but the benefits outweigh the risks: 71% of consumers surveyed by Ripple indicated they prefer to make purchases and pay bills directly from their bank account.

➡️ The regulator is keeping up: FedNow, the instant payment service launched by the US Federal Reserve System, allows financial institutions of all sizes in the US to offer fast and customizable payment services.

➡️ The achievements of open banking in the security field: in 2023, more than 30 million Americans transitioned from credential-based account access to tokenized access via API. However:

➡️ ... although 87% of Americans have linked their bank accounts to external companies, only 34% know how this process works. An interesting educational detail.

➡️ A key partnership case in the region: the alliance between Coinbase and Interac (Canadian A2A infrastructure provider). Since August 2023, Canadian Coinbase users have been able to seamlessly deposit and withdraw funds (CAD) via e-transfer.

➡️ A significant growth factor has been ISO 20022. This messaging exchange standard allows companies to securely exchange financial information worldwide.

➡️ A major event: PayPal launched its own stablecoin, PYUSD… and, of course, we covered it.

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