Visa’s A2A pay-by-bank service will launch in the UK and Europe next year, offering consumers a more secure way to pay bills and make purchases directly from their bank accounts.
Currently, when consumers set up direct debits for rent, utilities, or childcare, they often are required to sign over extensive personal data. In addition, they typically need to give advance notice to change payment amounts, and handling one-off transfers might require multiple interactions. Many consumers also lose significant amounts each year due to unauthorized subscription auto-renewals.
Visa A2A is designed to mitigate these issues by giving consumers the ability to monitor transactions and reverse them if necessary. The platform uses variable recurring payments (VRP), enabling users to adjust their direct debits with each transaction. A2A also leverages biometric authentication to reduce unauthorized transactions.
“We want to bring pay-by-bank methods into the 21st century and give consumers choice, peace of mind and a digital experience they know and love,” said Mandy Lamb, Managing Director, Visa UK and Ireland, in a statement. “Visa A2A will ensure consumer-to-business bank transfer payments have similar levels of protection that consumers are used to when they use their cards.”
Faster Payments
Visa will pilot A2A in the UK in early 2025 before expanding to Europe later in the year. The service will initially have limited scope—it can’t be used to pay for many recurring expenses like streaming services or gym memberships.
As the platform gains traction, businesses could see immediate benefits. A2A uses the UK’s Faster Payment System rails, which can deliver near real-time settlement. Merchants will be notified much faster if a consumer cancels or modifies a payment, and the system’s higher throughput for transaction data should facilitate smoother reconciliation.
Open Banking Trailblazer
Visa A2A should be well-received. The UK has been an open banking trailblazer, and account-to-account payments are one of the core principles of the model. The U.S. has lagged behind many other countries, in part due to the established credit card culture.
U.S. consumers have been hesitant to adopt pay-by-bank solutions because these methods are viewed as less secure, and account-to-account transactions are often irrevocable once authorized. Visa A2A could alleviate these concerns if the service gets a U.S. launch.
