Mastercard to acquire European open banking leader for $4 billion

Mastercard has announced plans to acquire a leading European open banking firm for approximately $4 billion, signaling a major move to expand its role in data-driven payments and account-to-account financial services. The acquisition, expected to close in late 2025 after regulatory approvals, will give Mastercard direct access to the firm’s technology and its growing base of European banking partners.

The target company operates an API-based platform that allows businesses, fintechs, and banks to access real-time financial data from customer accounts securely. This capability underpins a wide range of services, from instant payments and fraud detection to lending decision automation. By integrating the technology, Mastercard aims to strengthen its position in Europe, where open banking initiatives have accelerated rapidly following regulations like PSD2.

Executives at Mastercard described the move as part of a broader strategy to become a more comprehensive payments and financial services network. Open banking has grown in importance as consumers increasingly demand seamless digital experiences and businesses seek faster, more accurate payment and credit solutions. With the acquisition, Mastercard expects to offer merchants, banks, and fintechs a more connected ecosystem, combining its global card network with real-time account access.

The deal also reflects the growing competition in Europe between traditional card networks and fintech innovators. While Mastercard has a long history of card-based transactions, newer models such as account-to-account transfers and instant payment schemes have challenged the dominance of card rails. Acquiring an established open banking player allows Mastercard to bridge traditional and modern payment infrastructures, giving it a competitive edge.

Industry analysts note that the transaction could accelerate the adoption of digital financial products in sectors like e-commerce, peer-to-peer payments, and lending. For example, merchants could offer faster checkout experiences using real-time account verification instead of credit card authorization, while lenders could access more accurate data to make instant credit decisions.

European regulators are expected to review the acquisition closely, particularly in relation to data privacy and competition concerns. Both Mastercard and the acquired firm have indicated a commitment to maintaining strict compliance with GDPR and other relevant regulations. Executives said that integrating the company into Mastercard’s operations will focus on maintaining service continuity for current clients while scaling the platform’s capabilities across new markets.

The acquisition marks one of the largest in Europe’s open banking sector to date, underscoring the strategic value of real-time account access in the global payments ecosystem. By combining its existing payment infrastructure with open banking technology, Mastercard positions itself to capture both traditional and emerging revenue streams.

For customers and partners, the merger promises faster, safer, and more efficient transactions. It could also serve as a template for other global payments firms seeking to strengthen their digital offerings, demonstrating how large incumbents can adapt to the rapidly evolving financial landscape while meeting regulatory requirements.