Visa A2A: Revolutionising Bank Transfer Payments by 2025

Visa has announced the launch of Visa A2A, an open system designed to modernise account-to-account (A2A) payments. 

Set to debut in the UK in early 2025, this new offering promises to bring enhanced consumer control and protection to bank transfer payments, addressing longstanding issues in a sector that has seen little innovation since the inception of direct debit six decades ago.

Visa: Meeting the growth of A2A payments

The launch comes at a time when A2A payments are experiencing significant growth in the UK. In 2023, A2A Faster Payments in the country reached £3.7tn (US$4.87tn), marking a 15% increase from the previous year. 

Despite this growth, the process of paying bills and managing subscriptions through bank transfers has remained largely unchanged, often relying on manual processes and offering limited consumer safeguards.

Mandy Lamb, Managing Director of Visa UK and Ireland, explains: “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 aims to address several key pain points in the current A2A payment landscape. The system will introduce a formal dispute resolution process, providing consumers with a reliable way to query transactions. Enhanced security features, including biometric authentication, are expected to reduce unauthorised transactions.

Visa A2A: Increased payments control

One of the most significant improvements is the increased control Visa A2A will offer consumers over their payments. Users will be able to set up and manage payment permissions more easily, with the ability to set limit amounts to prevent unexpected financial stress from higher bills.

The introduction of Visa A2A is timely, considering the financial impact of the current system’s shortcomings. 

Industry data suggests that billions of pounds are lost or withheld from consumers due to issues such as unauthorised auto-renewals or the lack of flexibility around bill payments.

Visa’s move into the A2A space is not without its challenges. The company will need to navigate a complex ecosystem of banks, fintechs and regulators to ensure widespread adoption and interoperability. 

To this end, Visa is designing the system in partnership with leading UK fintechs, including Banked, Modulr, Moneyhub, Salt Edge, Vyne and Yaspa.