Visa, the global payments giant, has announced plans to roll out a new product aimed at enhancing the security and protection of consumers’ funds when making bank transfers.
The payments giant plans to launch a dedicated service for account-to-account (A2A) payments, skipping the traditional and often inflexible direct debit process.
This product is designed to address the growing concerns over the safety of digital payments, especially as more individuals and businesses rely on electronic transfers for everyday transactions. The new offering will provide consumers with additional layers of protection, ensuring that funds transferred between bank accounts are secure and that users are safeguarded from potential fraud or unauthorized access.
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With just a few clicks, users can set up direct debits, allowing merchants to take payments directly from customers’ bank accounts. The process eliminates the need for card details or manual bank transfer setup, streamlining transactions while maintaining security.
Speaking on this feature, Mandy Lamb, Visa’s managing director for the U.K. and Ireland, said in a statement,
“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. That’s why we are collaborating with UK banks and open banking players, bringing our technology and years of experience in the payments card market to create an open system for A2A payments to thrive.”
With Visa A2A, consumers will be able to set up variable recurring payments (VRP), a new type of payment that allows people to make and manage recurring payments of varying amounts. By leveraging open banking technology and existing payment rails, Visa aims to provide users with a secure and fast way to move money, catering to industries like e-commerce, subscription services, and P2P transfers. This initiative is also expected to appeal to markets where traditional credit card usage is low, allowing Visa to broaden its reach globally by supporting new payment preferences.
One notable standout feature of the new account-to-account (A2A) service, is its focus on consumer protection. Users will be able to monitor their direct debits more easily and flag any unauthorized or erroneous transactions through their banking app. This feature, similar to protections offered by card payments, addresses a key pain point for consumers-unauthorized auto-renewals of subscriptions. Visa said the new AZA service will make it easier for consumers to reverse such transactions and reclaim their money.
The payments giant announced that the product will initially launch in the U.K. in early 2025, with subsequent releases in the Nordic region and elsewhere in Europe later in 2025.
