Visa debuts a new product designed to protect consumers making bank transfers

Published On Sep 5, 2024, 4:38 AM

Visa is planning to launch an account-to-account (A2A) payment service in Europe, allowing users to pay directly from their bank accounts without the need for credit cards or traditional direct debits. This service will be launched initially in the UK in early 2025, with plans to expand to the Nordic region and rest of Europe later that year. The A2A service will enable easy monitoring and management of payments, including the ability to reverse transactions more efficiently, enhancing consumer control. Visa aims to take advantage of "open banking" technology, which provides security and convenience to users by enabling variable recurring payments for various transactions.

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This new payment service could potentially reduce Visa's reliance on traditional card transactions and fees. By offering a competitor to credit cards, Visa may attract a different segment of consumers while enhancing customer satisfaction with features that offer better control over payments. However, there is a risk that this service might cannibalize Visa's core business in cards if it becomes widely adopted. Investors should keep an eye on the uptake and success of this service.

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