Visa & Banked launch Visa A2A platform for UK in 2025

Visa has announced the launch of Visa A2A, an open system designed to enhance consumer control and protection for account-to-account (A2A) payments. This initiative is being developed in collaboration with leading industry players, including the fintech company Banked, which will use the system to facilitate variable recurring payments (VRP) in the UK.

The Visa A2A platform aims to provide a seamless and flexible payment experience for both consumers and businesses. By integrating VRP, the platform will enable automatic transfers from a payer's to a merchant's account. This service can be set up either as one-click transactions or scheduled transfers at regular intervals, depending on the user's preference. According to Visa, VRP offers a more secure, flexible, and real-time solution for handling repeat payments compared to traditional methods such as direct debits or standing orders.

Brad Goodall, CEO of Banked, emphasised the significance of this development, stating, "The customer benefits of using VRP include increased control and security of online payments. The value for businesses is equally compelling. Banked recognises the opportunity to accelerate in this space and that's why we're excited to be collaborating with Visa to enable rapid uptake of Pay by Bank across a range of industries including insurance, government, utilities, and retail. The launch today is testament to the strong partnership we have forged with Visa to deliver a better way of paying that is beneficial to consumers and merchants alike."

Visa A2A is slated to debut in the UK in early 2025. The new system will offer consumers a range of benefits, including a digital user experience, advanced security features, and an easy-to-use dispute resolution service. This represents a substantial upgrade to the current pay-by-bank experience, making it easier for people to manage their finances and recover funds if any issues arise. The company is leveraging decades of experience in payment innovations, including tokenisation, biometrics, and AI-based fraud prevention technology, to introduce new levels of control and usability for all stakeholders.

Mandy Lamb, Managing Director of Visa UK and Ireland, highlighted the outdated nature of the current bank payment systems, which have changed little since the inception of direct debits 60 years ago.

"Bank payments are a popular way to pay bills and services but have remained largely unchanged since the inception of direct debit 60 years ago. The UK is a dynamic and competitive market and UK consumers have become used to the convenience of digital transactions, from tapping in for their morning commute to grabbing a coffee on the go or shopping online after work. 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," she said.

Visa A2A will enable banks and businesses to offer more choice and control over bill payments. Key features of the system include a formal dispute resolution process, enhanced security through biometric authentication, and the ability for consumers to set payment permissions and limit amounts, thereby reducing financial stress from unexpected high bills.

The open system model of Visa A2A is designed to foster collaboration among eligible banks and industry partners, introducing standards, rules, and a dispute management service to further modernise open banking-based payments. Mandy Lamb added, "Visa A2A will ensure consumer-to-business bank transfer payments have similar levels of protection that consumers are used to when they use their cards."

For businesses, Visa A2A offers near real-time settlement through Pay.UK’s Faster Payment System, providing better visibility over payments and simplifying cash flow management. Additionally, the digital nature of Visa A2A includes features such as notifications for payment permission changes or cancellations and offers increased transaction data for reconciliation.