AI and Open Banking Are Replacing Card

For decades, cards have dominated online payments — but their time at the top is running out. As Open Banking and AI-driven checkouts go mainstream, a new payment model is emerging that’s faster, smarter, and more cost-effective for both merchants and consumers.

At the heart of this shift is Account-to-Account (A2A) payments — powered by Open Banking and optimized by AI. Here’s why A2A payments are poised to disrupt card dominance and reshape the future of e-commerce:

With A2A payments, funds move directly from the customer’s bank to the merchant’s account in real-time — no card networks, no delays. This means immediate access to funds and better liquidity for businesses.

Stat: Instant payment systems processed $195 billion globally in 2022 and are projected to hit $1.6 trillion by 2027.

(Source: ACI Worldwide)

Card payments come with processing fees of 1.5% to 3% per transaction, plus hidden costs from chargebacks and fraud.

A2A payments bypass card networks, slashing fees by up to 80% and significantly boosting profit margins.

AI enhances A2A checkouts by:

• Recommending the most successful payment method for each customer.

• Predicting and preventing cart abandonment with personalized incentives.

• Streamlining the process with one-click A2A payments and real-time authentication.

Result: Higher success rates, fewer failed payments, and happier customers.

AI uses Open Banking data to assess a customer’s real-time financial position (income, balance, spending habits) to:

• Offer personalized payment options (e.g., instant pay, split pay, credit).

• Ensure responsible affordability and reduce risk for both the merchant and the customer.

• Lower costs
• Faster settlements
• Smarter, AI-optimized experiences

Forecast: By 2027, Open Banking payments will process over $330 billion annually in Europe alone, and card payments will lose significant market share to A2A.

(Source: Juniper Research)

The future of checkout is frictionless, intelligent, and card-free. Businesses that adopt AI-powered Open Banking payments today will lead the e-commerce landscape of tomorrow.