Visa announced the launch of A2A payments, an open system that allows consumers to securely and quickly transfer funds between accounts, bypassing the traditional direct debit process.
Payments giant Visa announced the launch of its new open system for account-to-account (A2A) transfers. The initiative aims to increase consumer protection and give clients more control when paying through bank accounts.
The initiative is designed to make it easier to pay utility bills, rent, and other recurring payments. A2A transfers will be made directly from one bank account to another, without intermediaries such as payment cards.
The A2A transfer system will enable users to choose how and when to pay their bills, with the ability to set limits on payment amounts. One of the key innovations will be the introduction of biometric authentication methods to minimize unauthorized transactions. In addition, the system will provide users with a convenient and reliable dispute resolution mechanism, giving them confidence that funds will be returned in case of errors or fraud.
The first phase will start working in the United Kingdom, where it’ll be launched in early 2025. The region was chosen as the first for a reason. According to Visa, bank transfers in the U.K. will exceed £3.7 trillion ($4.85 trillion) in 2023. At the same time, this number grew by 15% over the year. Later next year, the system will be extended to the EU, starting with the Nordic countries.
According to Mandy Lamb, Visa’s Managing Director in the U.K. and Ireland, payment methods through bank accounts didn’t change much in the past 60 years, so Visa plans to modernize the industry. Lamb also said that the company intends to adapt familiar payment methods to the demands of the digital age, giving consumers more choice and control.
As part of the project, Visa is working closely with leading FinTech companies and banks to provide consumers with a high level of protection and convenience. The new system will be built on an open banking model, allowing any bank or other financial institution to join.
Earlier, Visa introduced a service that enables the use of cryptocurrencies to automatically debit regular payments.
