Visa Expands A2A Payments

Visa is gearing up to launch its account-to-account (A2A) payments service in the UK in early 2025, with plans to expand across Europe and beyond, CEO Ryan McInerney confirmed during the company’s fiscal Q1 earnings call, reports PaymentsDive. The initiative, previously announced in September, aims to streamline bill payments by leveraging Visa’s established infrastructure in digital transactions.

“We are still on track to launch Visa A2A in early 2025,” McInerney stated. “Since announcing, we’ve had strong engagement with clients, partners, and regulators in the UK.”

Visa's entry into A2A payments, also known as pay-by-bank, marks a strategic shift as the company adapts to a changing payments landscape. With some markets transitioning away from traditional card transactions in favor of direct bank payments, Visa sees an opportunity to provide secure and efficient alternatives that benefit both merchants and consumers.

Initially, Visa A2A will focus on bill-pay services, but the company envisions expanding into other payment flows. “Bill-pay in the UK is just the start,” McInerney emphasized. “Bringing Visa’s capabilities into the A2A space will provide tremendous value for our partners and the broader ecosystem.” Visa’s push into this segment aligns with its broader strategy of diversifying payment solutions as the card market matures. The company has been actively expanding its open banking initiatives, particularly following its 2022 acquisition of Tink, a European open banking platform that facilitates seamless money movement between banks, merchants, and fintechs.

Visa is also piloting pay-by-bank services in the U.S., though competition in the A2A space is heating up. Rivals like Zelle (Early Warning Services) and Aeropay are also offering direct bank-to-bank payment solutions, creating a more dynamic and competitive landscape. Financially, Visa continues to perform strongly. For its fiscal first quarter, net income grew 5% year-over-year to $5.1 billion, with revenue increasing 10% to $9.5 billion. Payment volumes in constant dollars rose 9%, driven by both credit and debit growth.

On the cryptocurrency front, Visa CFO Chris Suh downplayed the significance of crypto’s impact on its business but acknowledged stablecoins as an emerging opportunity, particularly in cross-border transactions. Analysts at investment firm William Blair see stablecoins as a potential new revenue stream rather than a threat to Visa’s core network.

Looking ahead, Visa is entering a major renewal cycle, renegotiating contracts that account for more than 20% of its payment volume. McInerney noted that Visa is taking a broader approach in these discussions, emphasizing new payment flows and value-added services to deepen relationships and drive long-term growth.