Bringing bank-to-bank payments into the 21st century

There are numerous benefits of account-to-account (A2A) transactions – including the opportunity to move money more quickly through digital capabilities and real time payments – but the benefit of speed can quickly be undone by the lack of support when things go wrong.

To address this, at today’s Visa Payments Forum Europe we announced plans to bring our decades of expertise, infrastructure and consumer protections to A2A transactions.

In an initial collaboration with banks, fintechs and third-party providers (TPPs), we have created a framework to manage and introduce standards, rules and processes for disputes to protect consumers and foster the growth of A2A payments. Visa A2A will keep payments fast, while making them more secure, reliable and scalable.

Making A2A even safer, efficient and more convenient

Over the next five years, the European real time payments market is expected to almost double in size, reaching $11 billion in 2029, helped in part by the EU’s new Instant Payments Regulation.

But while the consumer demand is clear, the reality of making A2A payments remains complex. In many cases, the user experience is inconsistent, and consumers still bear most of the risk when it comes to completing a transaction, meaning it is all too easy to lose track of recurring payments, or, even worse, fall victim to fraud.

As part of our ongoing commitment to reduce fraud across all payment forms, and encourage innovation to flourish, we have introduced Visa Protect for A2A, our innovative real-time account-to-account fraud detection service, so our clients are able to introduce smarter authorisation decisions.

Visa A2A is designed to address other pain points felt by many consumers, business and banks across the continent, so that people can have full confidence no matter how they choose to pay. The 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, in some cases 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.
  

Protecting A2A transactions for everybody

Visa A2A will also help financial institutions better serve their customers with protected A2A transactions, while businesses will now have a secure and reliable method of accepting A2A payments, with real-time settlement and a formal disputes management process that will make them more convenient in any environment.

The service will launch in the UK early next year, with banks and businesses able to offer Visa A2A to consumers making bill payments such as utilities, rent and childcare fees. In the future, Visa A2A will support UK consumers in better managing subscriptions of products and services including digital streaming, gym memberships and food boxes, ultimately giving people more choice and control over how they pay.

In time, Visa A2A will become available in the Nordic region, followed by other European markets. Given that A2A payment adoption, infrastructure and demand differs in markets, Visa A2A will be tailored to address the individual needs of each country across the region, offering people and businesses more choice in how they pay and get paid.

For more information on the UK launch, click here.