The total number of fintech third party providers (TPPs) in the EEA now stands at 338, marking a much faster rise than the last few quarters. The recent explosive growth is testament to increasing user demand and the maturity of many EEA markets. The UK, with a net increase of 2 TPPs has not experienced the same level of growth as the EEA and now has a total of 221 TPPs, taking the overall total to 559.
Fintechs are increasingly capitalising on the ability to use passporting permissions to extend their service offerings cross-border. With more TPPs now having the regulatory approval to operate in multiple markets, the average number of total TPPs in any given EEA market is now 113, an increase of 10 from the end of Q1 2022.
Once again, consolidation and change are common themes this quarter. With the rate of TPPs having their PSD2 permissions removed doubling year on year, the ecosystem has clearly moved on from its embryonic beginnings in 2019. It’s therefore critical for financial institutions to check a TPPs identity and regulatory permissions before granting account access.
Q2 Highlights
- Sweden has the highest number of Home TPPs for the second quarter running, despite one TPP losing its PSD2 permissions.
- Spain continues to have the highest number of passported-in TPPs but ranks outside the top 10 for Home regulated TPPs.
- Over the course of Q2, 23 EEA countries gained or lost Home regulated TPPs demonstrating continued market maturity .
- 9 TPPs from 9 EEA countries had their PSD2 permissions removed (Austria, Belgium, Cyprus, France, Germany, Liechtenstein, Lithuania, Slovakia and Sweden).
- There are still 2 countries with no Home regulated TPPs – Liechtenstein and Portugal – but account holders in these markets can still benefit from the services provided by the passported-in TPPs.
- There was a net increase of 3 TPPs in 5 countries (Denmark, Ireland, Malta,* the Netherlands and Poland).
The Rise in Passported TPPs
TPP Tracker Country Breakdown
*We recorded an increase of 3 TPPs in Malta at the end of Q2 due to changes in our data collection methodology.
Key Changes
Total number of TPPs
Top 10 Countries With the Most TPPs EEA: Home & Passported TPPs; UK: Home & TPR TPPs
Last quarter, 50% of EEA countries had over 100 TPPs authorised to provide open banking services. This quarter, that figure has increased to 77% demonstrating the continued interest in passporting. Payment Initiation also continues to be on the rise. Of the TPPs newly regulated, 71% of them provide PIS, well above the overall 63% average.
Mike Woods, CEO Konsentus
Want to learn more?