Visa declared that it is integrating account-to-account (A2A) payments using its infrastructure, technology, and capabilities, providing customers with greater control and security over their bank transfer payments. When Visa A2A launches in the UK in early2025, users will benefit from enhanced digital user experience, cutting-edge security features, and a user-friendly dispute resolution service. This is a big improvement over the current pay-by-bank process and will help customers get their money back in the event that something goes wrong. A2A Faster Payments received £3.7 trillion in payments in the UK in 2023, a 15% rise from 2022[1]. But bank transfers, which are used to pay bills and subscriptions, haven't really changed much in the sixty years since direct debit first appeared. This may make it more difficult.

Customers, companies, and the broader UK economy are all impacted by this. In fact, issues like illegal auto-renewals and rigidity around bill payments cause billions of pounds to be lost or withheld from customers. Decades of experience in payment innovations—tokenization, biometrics, AI-powered fraud prevention—are being leveraged by Visa to deliver new levels of control and usefulness to banks, enterprises, and consumers alike. Banks and companies in the UK will be able to provide Visa A2A to customers paying utility bills, rent, and child care costs starting early in the new year. In the future, we hope to assist customers in better controlling their subscriptions to goods and services including food boxes, exercise memberships, and digital streaming.

Choice, control and protection for consumers

Visa A2A will enable banks and businesses to give consumers more choice and control over how they pay their bills. Key features include:

Protection – A formal dispute resolution process will provide consumers with a reliable way to check transactions, whilst innovations such as biometrics will add a new level of security resulting in fewer unauthorised transactions.

Choice – Consumers will have another option to pay for products and services directly from their bank account, with the click of a button.

Control – It will be easier to set up and manage payment permissions so consumers will be in control over when payments are made, and will be able to set limit amounts, so higher bills will not put them unexpectedly under financial stress.

Open industry model, fostering collaboration

Visa A2A will be based on an open system available for all eligible banks and other industry partners to join, and introduces standards, rules and a dispute management service to help protect consumers and further modernise open banking-based payments. It is being designed in partnership with leading fintechs in the UK, including Banked, Modulr, Moneyhub, Salt Edge, Vyne and Yaspa, and will be delivered by key UK industry players working with Visa.

More confidence for businesses

Visa A2A also benefits businesses, as near real-time settlement through Pay.UK’s Faster Payment System gives them greater visibility over payments and makes cash flow management simpler. Businesses can also take advantage of the digital nature of Visa A2A, including notifications if a consumer changes or cancels payment permissions, and it also provides them with the ability to include more transaction data for reconciliation.