Visa has announced that it is applying the company’s infrastructure, technology and capabilities to account-to-account (A2A) payments. This will give consumers more control and protection on how they pay via bank transfers.
Visa A2A debuts in the UK in early 2025 and will give consumers a smarter, digital user experience, advanced security features and a dispute resolution service that represents a significant upgrade to the current pay-by-bank experience and aims to help people get their money back if something goes wrong.
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In 2023, £3.7tn was paid via A2A Faster Payments in the UK, a 15% increase over the previous year. However, the payment of bills and subscriptions through bank transfers has remained largely unchanged since the inception of direct debit 60 years ago.
This affects consumers, businesses and the wider UK economy. Billions of pounds are lost or withheld from consumers due to problems such as unauthorised auto-renewals or the lack of flexibility around bill payments.
Visa is bringing decades of experience to introduce new levels of control and usability for the benefit of consumers, businesses and banks. From early next year, banks and businesses in the UK can offer Visa A2A to consumers making bill payments such as utilities, rent and childcare fees. In the future, we will look to support consumers in better managing subscriptions of products and services including digital streaming, gym memberships and food boxes.
Visa A2A will enable banks and businesses to give consumers more choice and control over how they pay their bills
A formal dispute resolution process will provide consumers with a reliable way to check transactions, whilst innovations such as biometrics will add a new level of security resulting in fewer unauthorised transactions.
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By GlobalDataIt will be easier to set up and manage payment permissions so consumers will be in control over when payments are made and will be able to set limit amounts, so higher bills will not put them unexpectedly under financial stress.
Mandy Lamb, Managing Director, Visa UK and Ireland said: “Bank payments are a popular way to pay bills and services but have remained largely unchanged since the inception of direct debit 60 years ago. The UK is a dynamic and competitive market and UK consumers have become used to the convenience of digital transactions, from tapping in for their morning commute to grabbing a coffee on the go or shopping online after work.
“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. That’s why we are collaborating with UK banks and open banking players, bringing our technology and years of experience in the payments card market to create an open system for A2A payments to thrive. 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.”
