Why fintechs may skirt the US

Candescent head of experiences Kranti Talluri argues in Payments Dive that stalled US open banking rules are pushing payments players and fintechs to prioritize more "open banking-friendly" regions, much to the detriment of US innovation.

With the first major US open banking milestone quietly missed this spring, Talluri warns the country is falling behind the EU, where established rules set the baseline for real-time, account-to-account payments. As cross-border fintech apps import those expectations, US banks that can't match them face record-high churn.

The bigger risk, he argues, is retreat: leading players and fintechs are already pulling out of the US market, deterred by costly integrations and fewer ancillary benefits versus regions offering lower processing costs, faster payments and richer data. Fewer entrants means less innovation and choice for consumers, and fewer options for banks looking to extend their services.