Visa is gearing up for the 2025 launch of its A2A payments (Account-to-Account) in the UK, marking a significant advancement in its involvement in the country’s payments landscape.
With the predicted explosion in A2A payments, consumers will gain greater control and protection over how they handle bank transfers, promising a streamlined and secure alternative to traditional direct debit methods that have been in place for over six decades.
The upcoming Visa A2A platform will leverage Visa’s infrastructure and technology to deliver enhancements to the existing pay-by-bank systems.
Key features will include real-time settlements through Pay.UK’s Faster Payment System, an improved dispute resolution process, and wider payment choices for consumers making direct transfers from their bank accounts.
Visa has designed this solution in collaboration with UK fintech innovators such as Banked, Modulr, Moneyhub, Salt Edge, Vyne, and Yaspa.
Bringing Pay-by-Bank Into the 21st Century
Despite the growing adoption of Faster Payments, which processed £3.7 trillion worth of transactions in 2023 – a 15% increase from the previous year – the underlying bank transfer systems remain outdated.
For many consumers, managing payments such as bills and subscriptions via direct debit can be inflexible and prone to errors, with little to no consumer protections.
Visa’s A2A system is designed to change that by offering enhanced digital experiences, biometric security and a user-friendly interface to manage payment permissions.
Mandy Lamb, Managing Director of Visa UK and Ireland, highlights the need for modernisation: “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.
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.”
Improving Consumer and Business Benefits
The advantages of Visa A2A extend beyond consumers.
Banks and businesses will also benefit from this new payment system, which offers near real-time settlement and improved cash flow visibility.
Businesses can take advantage of Visa A2A’s digital tools to better manage subscriptions and payment permissions, such as receiving notifications when a consumer changes or cancels their payment terms.
By introducing biometric security and an enhanced dispute management system, Visa A2A promises to reduce unauthorised transactions and offer consumers a safer, more reliable way to track and manage their payments.
This innovation is particularly important as the demand for secure, flexible bank transfers grows.
Dan Scholey, Chief Commercial Officer at Moneyhub, noted the potential of Visa’s new offering: “A2A payments are transforming the way the world pays, and Variable Recurring Payments (VRPs) will play a central role in that shift.
Visa’s expertise in operating payment systems at scale will accelerate the delivery of VRPs to our customers.”
Visa’s A2A launch has been welcomed by industry leaders, who are eager to see the impact of this new payment method on both consumers and businesses.
Otto Benz, Director of Payments at Nationwide Building Society, and Rob Levy, Director of POS Lending Products at Barclays, both expressed support for the platform, recognising its potential to drive competition, innovation, and increased security in the A2A payments space.
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