Visa wants to expand its reach in payment flows beyond the traditional domain of its card network. The largest card network in the United States is preparing to offer A2A services in the UK in early 2025. As Visa CEO Ryan McInerney stated during the web broadcast of the company's first fiscal quarter results, this service will also reach other parts of Europe and other countries.
Initially, Visa will focus its A2A offering on bill payments for merchants and consumers, a segment where it has identified growing demand. However, the company plans to progressively expand the service to include direct transfers between bank accounts, thus optimizing the payment experience for its customers.
Account-to-account (A2A) payments allow direct transfers from the payer's bank account to the merchant or supplier without intermediaries such as credit or debit cards. Also known as “payment by bank,” these methods are beautiful to merchants as they eliminate card interchange fees.
According to Statista, A2A payments are expected to grow at a compound annual growth rate (CAGR) of 14% between 2023 and 2027, consolidating their position as a key payment alternative in the coming years. This boom has led companies such as Visa to diversify their services, seeking new opportunities as the card market in the US and other regions matures.
In this context, Visa has announced that it will implement its bank payments service in the US once it has consolidated its European presence. The European strategy relies on Tink, the open banking fintech acquired by Visa in 2022, facilitating money movement between banks, merchants, and fintechs.
However, Visa faces growing competition in the A2A sector, especially in markets such as the US and Latin America, where other digital payment players are expanding their solutions. In Europe, the growth of these services has been more moderate, as card processing costs are significantly lower. As a result, A2A payments have focused on specific segments, such as high-risk businesses, high-value transactions, and recurring fees.
