From CNBC: 2024-09-05 04:38:03

Visa plans to launch a new service for bank transfers next year in Europe, allowing users to set up direct debits on e-commerce sites. The service aims to provide better control and protection for consumers, starting with the U.K. in early 2025. The technology utilizes open banking and variable recurring payments.

Visa’s A2A product aims to modernize payment methods, giving consumers more choice and control. By collaborating with UK banks and open banking players, Visa hopes to create a seamless digital experience. The technology relies on open banking, which allows fintechs access to consumer banking data and has gained popularity in Europe.

In a $2 billion deal, Visa acquired Tink, an open banking service, to stay ahead of fintech competition and reduce reliance on card transaction fees. This move comes after a $30 billion settlement with Mastercard to reduce interchange fees. Visa faces the challenge of potentially cannibalizing its own card business with the new A2A service.

Read more: Visa to launch pay-by-bank payments, an alternative to credit cards