Europe API Banking Market Assessment, By Component, By Deployment Mode, By Application, By End-user, By Region, Opportunities and Forecast, 2018-2032F

Europe API Banking market is projected to witness a CAGR of 12.62% during the forecast period 2025-2032, growing from USD 10.04 billion in 2024 to USD 25.98 billion in 2032, owing to the widespread adoption of digital payments, high smartphone penetration, and a surge in contactless transactions, Europe's API banking market has transitioned from being a technical upgrade to a lifestyle enabler. Across the region, from tapping a card on metro turnstiles in Paris to splitting bills via mobile apps in Berlin, digital interactions are now seamlessly woven into everyday routines. While the pandemic acted as a catalyst, it's the regulatory push post-2023, driven by initiatives like PSD2 and Instant Payments Regulation, that has solidified this behavioral shift.

The Europe API banking market is notably changing due to new regulations, such as PSD2, changing consumer demands, and banks looking for operational flexibility. API banking enables financial institutions to provide access to limited data and services to third-party developers, thereby enhancing the development of new services such as payments, accounts, and identity verification. With the European Central Bank (ECB) implementing Instant Payments Regulation, now payment services providers must provide real-time payment services across the EU, making the infrastructure for APIs ready for implementation.

For instance, in May 2024, Finastra Limited partnered with LGT Financial Services Ltd. to enable fast-track compliance with these regulations, indicating the increased reliance on integrated API-based solutions.

In June 2025, BBVA (Banco Bilbao Vizcaya Argentaria, S.A.) launched its fully digital, fee-free bank in Germany, which supports an interest-bearing checking account. This is an example of how banks are consciously utilizing open APIs to improve service personalization and reach. In addition, the European Payments Initiative (EPI) and Europa's partnership to build a sovereign European payment framework shows a regional goal to reduce dependency on non-EU players. Traditional banks are evolving, and neobanks are scaling. API banking in Europe has evolved from an offering based on regulation to a financially material business model, with digital-first being the expected offering.

Regulatory Push for Open and Instant Banking is Strengthening the Market to Grow

Europe is ahead of the curve in regulatory reform, driving API adoption, largely due to the PSD2 and related open banking regulatory frameworks. These regulations mandate that banks open access to customer data securely and transparently, thereby encouraging competition and innovation.

For instance, in December 2024, the partnership between Saga Group and Salt Edge Ltd., aimed at supporting Serbian banks in adhering to open banking regulations, demonstrates how API providers will become important compliance partners in other non-EU European markets. In addition to examples of compliance, UPC has launched the first open banking platform in Ukraine, with further examples now emerging across Western Europe and beyond.

In March 2024, the ECB will have a new Instant Payments Regulation that requires banks to facilitate real-time transactions in euros. This has inevitably forced banks to deploy API capabilities that support instantaneous payments, deposit taking, fraud detection, and routing securely. API banking infrastructure is now foundational; there is no more optionality here. It's all part of furthering pan-European digital finance objectives. While these regulatory changes promote compliance and alignment, they are also fueling the rapid growth of API-driven services and innovation, resulting in more consumer-focused offerings across Europe.

Industry Collaboration Contributing to Europe API Banking Market Growth

APIs are revolutionizing banking, and the European API banking landscape is an active part of that revolution, driven by the emergence of digital-first banks and the growth of bank-fintech partnerships aimed at fostering pan-European regional integration and innovation. The strategic partnership between EuroPA (European Payments Association) and the European Payments Initiative (EPI), both working to build a sovereign, pan-European digital payments ecosystem, is a key example of this power shift.

In June 2025, when the transition occurred, Europe took a major step toward doing what it needed to do, enhancing regional autonomy in digital finance and establishing a continent-wide, secure, API-based payment infrastructure that better connects financial institutions in Europe. The EPI will tackle the fragmentation of the EU's digital payments market and limit reliance on foreign card networks by building an indigenous digital payments ecosystem based on API standards and shared infrastructure.

Platform Segment Dominates the European API Banking Markets

In the changing European API banking market, platform components are emerging as the key enablers in the competitive and high-growth open banking sector. Platforms have become the core of an entity, allowing secure sharing of data, onboarding of third-party institutions, and cross-institution openness in API exposure.

One of the most exciting examples of a platform is Ukraine's first open banking platform, developed by UPC (Ukrainian Processing Center) in partnership with SDK.finance, launched in September 2024. While this platform was launched outside of the EU, it is designed to meet the EU's PSD2 and Berlin's Group standards, including modular API capabilities, real-time analytics and monitoring tools, and identity management, essential tools that meet regulatory and technological standards found in Western Europe.

This trend emphasizes the importance of platforms, not purely as middleware, but as a strategic layer facilitating core banking transformation. This is particularly useful for mid-sized banks, credit unions, and upcoming fintechs across Central and Eastern Europe. As institutions attempt to modernize their digital experiences, the demand for cloud-native, scalable, and regulation-ready platforms continues to grow. Platforms will typically provide consent dashboards and tools to monitor real-time transactions through their developer portals and sandbox environments. As new players enter this exciting market, they will enable banks and institutions to offer secure, agile, and compliant open banking experiences across Europe.

Key Players Landscape and Outlook

The Europe API banking market is growing in competition with innovation from both legacy banks and fintechs. An example of recent strategic growth is Bizum's introduction of "Bizum Pay", a standalone payments app launched in October 2024. Bizum, a bank-led initiative in Spain that enables peer-to-peer payments, is expanding its reach with a standalone app that utilizes APIs and real-time banking infrastructure. This change illustrates how group-led platforms are adapting to the changing consumer behaviour and simplifying the user experience for consumers who want an API-based digital payment experience that is independent of a mobile banking app.

At the same time, banks such as BBVA S.A., Deutsche Bank AG, and Barclays Bank PLC are continually evolving their API capabilities to compete, whether by developing developer portals, integrating third-party services, or offering payment and account services that align with PSD2. Fintech enablers like Tink AB, TrueLayer Ltd., and Salt Edge, Inc., provide platform middleware for banks and app developers, creating a faster time-to-market and fewer service requirements. As both the fintech homegrown and collaborative banking ecosystems develop across Europe, they are poised to position themselves for a new wave of shared API monetization strategies that ensure innovation is owned by both consumers and banks, rather than just by Big Tech players.