Visa Launches A2A Payment Platform with Card-Like Protection

Visa has launched its account-to-account payment platform in the UK, introducing consumer protections to bank transfer transactions that match those available with card payments. 

Visa A2A operates on Pay.UK's Faster Payment System and targets bill payments and subscriptions before expanding into ecommerce.

Account-to-account payments, which enable direct bank transfers without card networks, have grown rapidly in the UK following open banking regulations introduced in 2018. 

However, these transactions traditionally offer limited consumer recourse when payments fail or merchants dispute charges.

Visa A2A establishes guidelines for consumers, businesses and banks regarding rights and responsibilities when transactions encounter problems. The system provides near real-time settlement through existing UK payment infrastructure whilst adding dispute resolution mechanisms.

The payment network is working with Nationwide Building Society, TSB, Checkout.com, Utilita, Plaid, Kroo Bank, Acquired.com, Bottomline, Modulr and Tink for the initial rollout. These partners intend to integrate the platform into their services from 2025.

Infrastructure targets subscription economy

The platform initially processes recurring payments including utility bills and subscription services. Consumers manage payment permissions through their banking applications, with notifications sent to merchants when customers modify or cancel payment arrangements.

Businesses receive enhanced transaction data for reconciliation purposes, addressing operational challenges that have limited adoption of traditional account-to-account payments in commercial settings. The system operates on an open model designed to accommodate additional banks and fintech companies.

Variable Recurring Payments, which allow flexible subscription amounts, represent a key component of the offering. These payments enable merchants to adjust billing amounts without requiring fresh consumer authorisation for each transaction, similar to continuous payment authorities used with cards.

Isabel Pitt, Deputy Director of Payments at Nationwide Building Society, says the framework addresses infrastructure gaps that have constrained account-to-account payment growth. 

“A2A payments are rapidly gaining traction across UK businesses and consumers, offering a seamless and efficient way to transact,” Isabel explains. “However, for these payments to reach their full potential, the right framework - rules, capabilities, and protections - must be in place.”

Research from Innovate Finance suggests advancing the UK fintech ecosystem could generate £328bn (US444.5bn) over five years, though this figure encompasses broader fintech development beyond payment infrastructure.

Ecommerce expansion planned

Visa plans to extend the platform to ecommerce transactions following the subscription payment launch. The ecommerce version will enable one-click purchasing after initial customer authorisation, competing with existing checkout solutions from PayPal, Amazon and other providers.

The expansion addresses merchant concerns about payment abandonment rates, which increase when customers must navigate multiple authentication steps during checkout. 

Account-to-account payments can reduce processing costs for merchants compared to card transactions, which typically incur interchange fees of 0.2% to 0.3% for UK debit cards.

Mandy Lamb, Managing Director for Visa UK and Ireland, positions the launch as a response to increasing fraud rates and international competition in UK financial services. “We are proud to be working with our partners to deliver a state-of-the-art pay by bank experience,” she states.

Payment processor Checkout.com will integrate Visa A2A into its merchant services platform. Matthieu Barral, VP of Global Partnerships at Checkout.com, describes the partnership as establishing “a new standard for speed, security, and payment performance”.

Market positioning

The launch occurs as regulatory pressure increases on traditional payment methods. The UK's Payment Systems Regulator has examined interchange fees and market concentration in card payments, whilst the European Union has implemented caps on interchange rates.

Open banking adoption in the UK has accelerated since mandatory implementation, with account-to-account payments reaching significant volumes in specific sectors including utilities and financial services. 

However, consumer adoption for general retail purchases remains limited compared to card payments.

Delphine Emenyonu, Head of Unsecured Lending & Open Banking at TSB, emphasises infrastructure requirements for market development.

“As interest in A2A payments continues to grow among UK consumers and businesses, ensuring the right infrastructure, standards, and protections are in place will be key to supporting their future development," she says.

Energy supplier Utilita has committed to implementing the platform across both credit and prepayment customer journeys. 

Ian Burgess, Managing Director at Utilita, cites the protection framework as a decisive factor. "The reassurance that Visa A2A provides to both the merchant and the consumer was a key factor in our decision to partner with Visa on this initiative," he notes.

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