Visa has launched its account-to-account (A2A) payment solution in the UK—a new service that enables users to manage bill and subscription payments directly through their banking apps. Leveraging the existing UK payment infrastructure, Visa A2A offers near real-time settlement along with enhanced dispute resolution mechanisms, similar to those available for its credit cards.
Consumers can manage their payment permissions within their banking applications, with merchants receiving notifications when customers modify or cancel payment arrangements. First announced last September, the service is expected to expand to e-commerce payments in the future.
The UK has been a trailblazer in pay-by-bank solutions. If the A2A service proves successful, it could help alleviate concerns around similar offerings in the U.S.
“Real-time A2A payments coupled with open banking has been driving pay-by-bank adoption in the UK,” said Elisa Tavilla, Director of Debit Payments at Javelin Strategy & Research. “The method is gaining traction with customers, particularly with bill payments. By providing purchase protection comparable to card payments, Visa’s new A2A platform will further strengthen pay-by-bank’s value proposition and appeal to consumers. It could potentially become a preferred payment option in retail and other industries.”
Safeguards for Consumers, Features for Businesses
In addition to providing refund mechanisms for A2A transactions, Visa is also offering guidelines for consumers, businesses and banks regarding their rights and responsibilities when transactions encounter problems.
For their part, businesses will benefit from greater visibility and more efficient cash flow management. Enhanced transaction data will support reconciliation efforts, and the service’s Variable Recurring Payments feature allows for flexible subscription billing.
That allows merchants to adjust billing amounts without requiring new consumer authorization for each transaction—a mechanism similar to continuous payment authorities used with credit and debit cards.
E-Commerce on the Horizon
Visa also confirmed plans to expand A2A to e-commerce payments, with a phased rollout intended to deliver a one-click checkout experience for bank transfers. After the initial authorization, consumers would be able to complete subsequent A2A transactions securely without re-entering payment details. The e-commerce version will compete with existing checkout solutions from providers like PayPal and Amazon.
Visa plans to expand the program to other countries in Europe later this year. There is no word yet on when, or if, the service will launch in the U.S.
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