Visa Introduces Bank Payment Option in the United Kingdom Market
Visa's New Pay by Bank Solution Set to Revolutionise UK E-commerce
Visa has announced plans to expand its Account-to-Account (A2A) pay by bank solution to include e-commerce payments in the UK, marking a significant step forward in the country's fintech landscape.
The new solution, Visa A2A, promises to offer a game-changing pay by bank experience, enabling consumers and businesses to make and receive payments directly from their bank accounts without the need for traditional card networks.
One of the key benefits of Visa A2A is the direct bank-to-bank transfers, which bypass card networks and their associated fees. This could potentially lead to lower costs for merchants, resulting in lower prices for consumers.
The solution also promises enhanced convenience and speed, with instant or near real-time payments, ensuring quick fund transfers and a seamless checkout experience.
Visa is also developing tools like Visa Protect for A2A payments to mitigate fraud risks commonly associated with real-time payment networks. This aim is to provide card-level protections for A2A transactions, offering consumers the same level of security they enjoy with card payments.
For businesses, Visa A2A offers benefits such as near real-time settlement and greater visibility over payments. This could help businesses manage their cash flow more effectively and reduce the risk of late or missed payments.
Mandy Lamb, managing director of Visa UK and Ireland, is leading the development of Visa A2A. She believes that the solution aligns with regulatory trends, such as the UK’s proposed Consumer Credit Charge (CCC) Act, which could impact card fees, making A2A payments a future-proof payment method for both businesses and consumers.
Research from Innovate Finance suggests that advancing the UK's fintech ecosystem could unlock £328 billion over the next five years. With Visa A2A, Visa aims to contribute to this growth by boosting the UK fintech community and extending Open Banking-enabled payments.
UK consumers and businesses using pay by bank with Visa A2A will benefit from protections typically associated with card payments. This includes the ability to get their money back if there is an error with Visa A2A, providing peace of mind for both parties.
In summary, Visa A2A combines the cost efficiency, speed, security, and convenience of direct open banking payments to provide a competitive alternative to card payments. The solution is set to offer a fast, seamless, and secure checkout process, making pay by bank transactions safer and smarter.
- Visa's new A2A pay by bank solution, aiming to revolutionize UK e-commerce, promotes a game-changing experience in direct payments from bank accounts, bypassing traditional card networks.
- The Visa A2A solution offers benefits such as lower costs for merchants due to the absence of card network fees, resulting from direct bank-to-bank transfers.
- Visa A2A ensures instant or near real-time payments for consumers and businesses, resulting in quick fund transfers and a seamless checkout experience.
- Visa is developing tools like Visa Protect to safeguard A2A transactions from fraud risks, thereby providing the same level of security consumers enjoy with card payments.
- For businesses, Visa A2A presents benefits such as near real-time settlement and improved visibility over payments, aiding better cash flow management and reducing the risk of late or missed payments.
- By boosting the UK fintech community and extending Open Banking-enabled payments, Visa A2A aligns with regulatory trends and aims to contribute to the £328 billion growth of the global fintech industry over the next five years.
