Visa launches "Pay by Bank" service in the UK market
In the rapidly evolving world of financial technology, Visa has unveiled a groundbreaking innovation - Visa A2A, a pay by bank solution designed to transform the way consumers pay for goods and services in the UK.
This new service enables consumers to pay directly from their bank accounts without relying on traditional card networks. By leveraging open banking infrastructure, Visa A2A facilitates seamless and secure transfers between consumer and merchant bank accounts.
Key features and benefits of Visa A2A include direct bank-to-bank transfers, which bypass card networks, potentially lowering costs and friction. The solution also utilises open banking APIs for instant and secure payment initiation from a consumer’s bank account to a merchant.
Visa A2A modernises electronic payments, bringing the security and ease traditionally associated with card payments to bank transfers. Enhanced fraud protection is provided through tools like Visa Protect for A2A Payments, addressing security concerns common in real-time payment networks.
Moreover, Visa A2A can be integrated into merchant platforms for a more contextual and convenient payment experience, improving engagement and enabling value-added financial services. This innovation provides consumers with more payment choices while allowing merchants to accept payments directly from bank accounts quickly and securely.
Mandy Lamb, managing director of Visa UK and Ireland, expressed her pride in Visa's partnerships in delivering a superior pay by bank experience with Visa's best-in-class consumer protections. She stated that the UK must continue to lead the way in financial services innovation.
Visa A2A is set to expand to ecommerce payments in the UK with a phased approach. The new service is expected to offer a secure, hassle-free way to pay directly through bank accounts, making pay by bank transactions safer and smarter.
Research from Innovate Finance suggests that advancing the UK's fintech ecosystem, a key partner in the development and delivery of Visa A2A, could unlock £328 billion over the next five years.
Furthermore, Visa A2A benefits businesses by offering near real-time settlement and simplifying cash flow management. Customers will be able to authorise this payment method once, then choose pay by bank at checkout for a one-click purchase experience. Additionally, businesses can receive notifications if a consumer changes or cancels payment permissions.
In summary, Visa A2A's pay by bank solution in the UK aims to transform payment networks by streamlining direct bank transfers, improving speed and security, and providing a modern alternative to traditional card payments leveraging open banking.
For more detailed information, please refer to the article titled "Visa to 'upgrade' Pay by Bank experience with UK launch of Visa A2A".
- Visa A2A, a groundbreaking innovation in fintech, offers a new way for consumers to make payments directly from their bank accounts, bypassing traditional card networks and leveraging open banking infrastructure.
- This pay by bank solution, designed for the UK market, facilitates seamless and secure transfers between consumer and merchant bank accounts, potentially lowering costs and friction.
- Visa A2A can be integrated into merchant platforms for a more contextual and convenient payment experience, improving engagement and enabling value-added financial services.
- The UK's adoption of Visa A2A is expected to unlock significant economic potential, with Innovate Finance's research suggesting that advancing the UK's fintech ecosystem could unlock £328 billion over the next five years.
- The service also benefits businesses by offering near real-time settlement and simplifying cash flow management, with customers able to authorise this payment method once for a one-click purchase experience.
- Visa A2A is set to expand to ecommerce payments in the UK, offering a secure, hassle-free way to pay directly through bank accounts, making pay by bank transactions safer and smarter.
