Visa Inc. (NYSE:V) reportedly Visa plans to introduce a dedicated service for account-to-account (A2A) payments, bypassing the traditional and often rigid direct debit process.
The product is set to launch in the U.K. in early 2025, with subsequent rollouts in the Nordic region and other parts of Europe later in the year, reported CNBC.
The consumers will be able to easily monitor A2A payments and address any issues by clicking a button in their banking app, providing a similar level of protection as with card transactions.
As per the report, the new service will help address issues like unauthorized auto-renewals by simplifying the process of reversing direct debit transactions and obtaining refunds. Initially, it will not cover services such as TV streaming, gym memberships, and food boxes, but these are planned for future inclusion.
Visa's A2A product utilizes open banking technology, which mandates that lenders provide third-party fintechs with access to consumer banking data.
The report quoted Mandy Lamb, Visa's managing director for the U.K. and Ireland, who said, "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."
Last month, Visa launched a Money Movement Advisory Practice in the U.S. and Canada to help clients navigate the $200 trillion market.
Investors can gain access to the stock via iShares U.S. Financial Services ETF (NYSE:IYG) and SPDR Select Sector Fund – Financial (NYSE:XLF).
Price Action: V shares are up 0.06% at $280.66 premarket at the last check Thursday.
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