Visa has announced the launch of a new service designed to make account-to-account (A2A) payments safer and more user-friendly, allowing consumers to bypass traditional credit cards and direct debit processes. The service, set to debut in Europe in 2025, will enable users to make secure payments directly from their bank accounts with ease.
The A2A service will first launch in the U.K. in early 2025, with plans to expand to the Nordic region and other parts of Europe later in the year. It allows consumers to set up direct debits with just a few clicks on e-commerce platforms, providing a more streamlined process compared to traditional direct debit methods, which often require sharing sensitive bank details.
A key feature of Visa’s A2A system is the enhanced control it offers consumers. Users will be able to monitor payments, raise issues directly through their banking apps, and reverse unauthorized transactions, offering a level of protection similar to that of credit card payments. While the initial launch will not include recurring payments for services like TV streaming or gym memberships, Visa plans to introduce this functionality in the future.
The introduction of variable recurring payments (VRP), a new type of payment that allows for flexible recurring transactions, is another highlight of the A2A service. This innovation provides consumers with greater control over payments, eliminating the rigid requirements of traditional direct debits.
Visa’s move into A2A payments is part of a broader strategy to modernize payment systems through open banking technology, which allows third-party fintech’s to access consumer banking data securely. Visa’s acquisition of Tink, an open banking platform, in 2021 for €1.8 billion, further solidified its position in the evolving fintech landscape.
While this service could reduce merchants’ reliance on traditional card transactions, potentially affecting Visa’s card business, the company remains committed to offering flexible payment options for both card and non-card transactions.
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