Visa debuts a new product designed to make it safer to pay directly from your bank account

Visa said it plans to motorboat a dedicated work for slope transfers, skipping recognition cards and the accepted nonstop debit process.

Visa, which alongside Mastercard is 1 of the world's largest paper networks, said Thursday it plans to motorboat a dedicated work for account-to-account (A2A) payments successful Europe adjacent year.

Users volition beryllium capable acceptable up nonstop debits — transactions that instrumentality funds straight from your slope relationship — on merchants' e-commerce stores with conscionable a fewer clicks.

Visa said consumers volition beryllium capable to show these payments much easy and rise immoderate issues by clicking a fastener successful their banking app, giving them a akin level of extortion to erstwhile they usage their cards.

The work should assistance radical woody with problems similar unauthorized auto-renewals of subscriptions, by making it easier for radical to reverse nonstop debit transactions and get their wealth back, Visa said. It won't initially use its A2A work to things similar TV streaming services, gym memberships and nutrient boxes, Visa added, but this is planned for the future.

The merchandise volition initially motorboat successful the U.K. successful aboriginal 2025, with consequent releases successful the Nordic portion and elsewhere successful Europe aboriginal successful 2025. 

The occupation presently is that erstwhile a user sets up a outgo for things similar inferior bills oregon childcare, they request to capable successful a nonstop debit form.

But this offers consumers small control, arsenic they person to stock their slope details and idiosyncratic information, which isn't secure, and person constricted power implicit the outgo amount.

Static nonstop debits, for example, necessitate beforehand announcement of immoderate changes to the magnitude taken, meaning you person to either cancel the nonstop debit and acceptable up a caller 1 oregon transportation retired a one-off transfer.

With Visa A2A, consumers volition beryllium capable to acceptable up adaptable recurring payments (VRP), a caller benignant of outgo that allows radical to marque and negociate recurring payments of varying amounts.

"We privation to bring pay-by-bank methods into the 21st period and springiness consumers choice, bid of caput and a integer acquisition they cognize and love," Mandy Lamb, Visa's managing manager for the U.K. and Ireland, said successful a connection Thursday.

"That's wherefore we are collaborating with UK banks and unfastened banking players, bringing our exertion and years of acquisition successful the payments paper marketplace to make an unfastened strategy for A2A payments to thrive."

Visa's A2A merchandise relies connected a exertion called unfastened banking, which requires lenders to supply third-party fintechs with entree to user banking data.

Open banking has gained popularity implicit the years, particularly successful Europe, acknowledgment to regulatory reforms to the banking system.

The exertion has enabled caller outgo services that tin nexus straight to consumers' slope accounts and authorize payments connected their behalf — provided they've got permission.

In 2021, Visa acquired Tink, an unfastened banking service, for 1.8 cardinal euros ($2 billion). The woody came connected the heels of an abandoned bid from Visa to bargain competing unfastened banking steadfast Plaid.

Visa's buyout of Tink was viewed arsenic a mode for it to get up of the menace from emerging fintechs gathering products that let consumers — and merchants — to debar paying its paper transaction fees.

Merchants person agelong bemoaned Visa and Mastercard's recognition and debit paper fees, accusing the companies of inflating alleged interchange fees and barring them from directing radical to cheaper alternatives.

In March, the 2 companies reached a historical $30 cardinal colony to trim their interchange fees — which are taken retired of a merchant's slope relationship erstwhile a shopper uses their paper to wage for something.

Visa didn't stock details connected however it would monetize its A2A service. By giving merchants the enactment to bypass cards for payments, there's a hazard that Visa could perchance cannibalize its ain paper business.

For its part, Visa told CNBC it is and ever has been focused connected enabling the champion ways for radical to wage and get paid, whether that's done a paper oregon non-card transaction.