Visa has announced a planned UK launch of its account-to-account (A2A), aiming to enhance its customer experience significantly.
Visa A2A, expected to launch in the UK in early 2025, aims to offer consumers a smarter digital experience with strengthened security and an easy-to-use dispute resolution process. According to the company, this new service significantly improves existing pay-by-bank options, making it simpler for users to get their money back if problems occur.
The payment giant has explained that one reason for launching Visa A2A in the UK is the growing use of A2A transactions, with £3.7trn processed through Faster Payments in 2023 – an increase of 15% from the previous year.
Despite this growth, how bills and subscriptions are paid via bank transfers has seen little change since direct debit was introduced 60 years ago. These outdated systems often involve manual processes and limited consumer protections, making it challenging for people to manage their finances in the digital age.
Mandy Lamb, Managing Director of 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.”
The service looks to empower banks and businesses to offer consumers greater choice and control over how they pay their bills. A key feature of the service is protection: a structured dispute resolution process will give consumers a reliable way to review and challenge transactions, while innovations like biometric authentication will enhance security and reduce unauthorised transactions.
In terms of choice, consumers will have a new option to pay for products and services directly from their bank accounts, providing greater flexibility.
Additionally, Visa A2A aims to improve control by making it easier to set up and manage payment permissions. This means consumers can decide when payments are made and set spending limits, helping to prevent unexpectedly high bills and reduce financial stress.
A spokesperson for Lloyds Banking Group commented: “A2A payments present opportunities for business and consumers, and we are supportive of industry-driven solutions being developed in this space. We welcome innovation in the market to improve the overall experience for people making payments.”
The new A2A service will function as an open system, enabling all eligible banks and industry partners to participate. It introduces new standards, rules, and a dispute management service to enhance consumer protection and advance the modernisation of payments using Open Banking.
Developed in partnership with leading UK fintech companies such as Banked, Modulr, Moneyhub, Salt Edge, Vyne and Yaspa, the service will be delivered through collaboration with key UK industry players working alongside Visa.
Otto Benz, Director of Payments at Nationwide Building Society, stated: “We know that businesses and consumers alike are keen to explore the benefits of A2A transactions, and we expect demand to increase in the coming years. The industry will need to collaborate on innovations such as Visa A2A if we are to put in place the necessary rules, capabilities and consumer protections that will unlock the full potential of A2A.”
