Open Banking in 2026: Opportunities for High-Risk Merchants

The Era of Instant Transfers: A Revolution for High-Risk Payments

By 2026, Open Banking will no longer be a mere alternative but a central pillar of payment strategies for high-risk merchants. Driven by strong adoption and refined regulation (PSD3), it promises to reshape the ecosystem by offering a high-performance alternative to card networks, resulting in lower costs and enhanced security.

From Theory to Practice: Open Banking Reaches Maturity

Initiated by the Second Payment Services Directive (PSD2), Open Banking laid the groundwork for a more open and interconnected financial system. Today, we are entering a mature phase. By 2026, payments initiated via Open Banking are expected to account for over 20% of all e-commerce transactions in Europe, with even more significant growth in sectors considered "high-risk."

The Impact of PSD3 and the PSR

The European Commission's proposal for PSD3 and the Payment Services Regulation (PSR) aims to perfect the model. The objectives are clear: to harmonize the user experience, strengthen the fight against fraud, and clarify responsibilities. For merchants, this translates into smoother payment journeys and increased consumer trust, thereby removing the final barriers to mass adoption.

The upcoming regulation doesn't just fix the shortcomings of PSD2; it paves the way for innovations like Variable Recurring Payments (VRPs), which are crucial for subscription models.

Instant Transfers (SCT Inst) as the New Standard

At the heart of this revolution is the account-to-account (A2A) payment, particularly via SEPA Instant Credit Transfer. Unlike a card payment, an instant transfer is:

• Irrevocable: Once the payment is confirmed by the customer through their bank's Strong Customer Authentication (SCA), it cannot be unilaterally canceled.
• Direct: Funds move directly from the payer's account to the merchant's, without the many intermediaries of card networks.
• Secure: Authentication takes place within the secure environment of the customer's bank, drastically reducing the risk of fraud and payment data theft.

Payment orchestration platforms like Bridge Pay act as catalysts by aggregating these new methods and making them accessible to high-risk merchants through a single, simplified technical integration.

What Open Banking Concretely Changes for Your Business

For a merchant operating in a high-risk sector (e.g., gaming, VOD, subscriptions), the benefits of Open Banking in 2026 are direct and measurable.

1. Drastic Reduction in Chargebacks

This is the main advantage. The irrevocable nature of instant transfers and SCA validation nearly eliminate "friendly fraud." Our estimates, based on initial implementations, show a potential reduction in chargebacks of up to 90% compared to card payments.

2. Significant Decrease in Transaction Costs

By bypassing card networks and their fees (interchange, network fees), Open Banking payments have much lower costs. While a card payment can cost between 2% and 4% of the transaction, an A2A payment is often below 1%, a net margin gain for the merchant.

3. Increased Acceptance and Conversion Rates

Arbitrary payment declines by issuing banks are a source of frustration and lost revenue. A2A transfers, validated directly by the customer's bank, have a much lower failure rate. Coupled with a journey that requires no card number entry, this can increase conversion rates by 5% to 10%, depending on the industry.

By integrating a specialized solution like Bridge Pay, merchants can capitalize on these benefits without managing the underlying technical complexity. We orchestrate the flow to ensure performance, security, and unified reporting.

Outlook for 2026 and Beyond: Towards Intelligent Payments

The horizon for Open Banking doesn't end with a single payment. The next wave of innovation, which we are actively preparing for at Bridge Pay, focuses on even more integrated applications.

The Future of Subscriptions: Variable Recurring Payments (VRPs)

VRPs will allow customers to pre-authorize future payments (with variable amounts and frequencies) for a specific merchant. It's a simpler and less expensive alternative to SEPA Direct Debit or tokenized cards for subscription models, a major challenge for many high-risk players.

For businesses in high-risk industries, the question is no longer *if* Open Banking will impact them, but *how* to prepare for it. Choosing an agile payment partner like Bridge Pay, at the forefront of these technological and regulatory developments, will be key to turning this challenge into a decisive competitive advantage.

Find out how our expertise can secure and accelerate your growth in this new ecosystem.