Visa has announced it will launch account-to-account (A2A) payments to give consumers “more control and protection” on how they pay via bank transfers.

The payment services giant claims A2A is an easy and safe way to pay recurring bills with bank transfers, with users able to easily get their money back if something goes wrong.

Visa said that this marks a “significant upgrade” to the current pay-by-bank experience.
The service will launch in the UK early next year and has been designed with several FinTechs including Banked, Moneyhub and Vine.

Visa said the service will offer consumers more control over their payments as it will be easier to manage payment permissions, they will also be able to set limit amounts so higher bills will “not put them under financial stress”.

Visa quoted research from Pay.UK, an interbank payment standards body, which found £3.7 trillion was paid by A2A faster payments in 2023 in the UK. However, the company said the majority of consumers are paying bills through direct debit.

It said this is a harder way for people to manage their finances as it still requires manual processes and has limited safeguards.

Visa said “billions of pounds” are lost or withheld from consumers due to issues such as unauthorised autorenewals or lack of flexibility around payments.

Mandy Lamb, managing director, Visa UK and Ireland said that bank payments are a popular way to pay but have remained largely unchanged since the introduction of direct debit 60 years ago.

“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,” she added. “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.”

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