A2A payment providers enable businesses and consumers to transfer money directly between bank accounts. These providers use open banking infrastructure and APIs to enable pay-by-bank transactions.
Unlike card processors, A2A payment providers don’t rely on credit or debit networks. They allow payments to move instantly between accounts, reducing transaction fees and settlement delays.
How A2A Payment Providers Work
A2A payments are often powered by open banking, a system where banks securely share their APIs with licensed providers, with customer consent.
This allows payments to be initiated directly from a customer’s bank account, without card networks. Customers authorise transactions within their trusted banking app, ensuring a seamless and secure experience.
A2A payment providers handle the technical setup for merchants, making it easy to integrate and start accepting direct bank transfers.
Benefits of Using A2A Payment Providers
A2A and open banking bring several advantages to businesses and consumers. Here’s why they are growing in popularity:
- Lower Transaction Costs: Since they bypass card networks, A2A open banking payments have lower fees (no interchange, no scheme fees). Businesses save money on every transaction, making them ideal for companies with high payment volumes.
- Faster Settlements: Card payments can take days to settle, but A2A transactions often happen instantly or within hours. This improves cash flow and reduces reliance on credit lines.
- Security: A2A payments use bank-level authentication, reducing fraud risks. Since there’s no need to store card details, businesses also lower their exposure to data breaches.
- Better Checkout Experience: Customers can pay directly from their bank accounts with a few clicks. This eliminates the need for card details or extra steps, leading to a smoother checkout process and better UX.
- Fewer Chargebacks: Since A2A payments require user authorization, unauthorised disputes and chargebacks are rare. This benefits merchants by reducing fraud-related losses.
- Less Cart Abandonment: As the UX is superior and the checkout process is easy, less customers are likely to abandon their shopping carts.
Future of A2A Payment Providers
More businesses are turning to account-to-account (A2A) open banking payments for faster, cheaper transactions. In the UK, open banking transaction volumes grew from 320,000 in 2018 to 224 million in 2024. The global open banking market is set to grow from $25.6 billion in 2023 to $113.3 billion by 2032. By cutting out card fees and speeding up settlements, more retailers are adding A2A payments to their checkout options.
Regional trends also show rapid adoption. Brazil’s Pix system has revolutionised payments in Latin America, making it the region’s A2A leader. In Europe, PSD2 open banking payments are already widely used. In the US, with new regulation, instant payments are projected to make up 3.8% of the total payments mix by 2027.
As A2A providers refine their technology, the user experience is becoming more seamless. Features like one-click payments and biometric authentication are eliminating friction, making A2A payments the next logical step for digital commerce.
Cross-border A2A payments are the next frontier. While most A2A transactions today are domestic, businesses are looking for solutions that avoid high conversion fees and slow processing times.
Regulation is also driving A2A growth. Open banking initiatives and standardised APIs are making it easier for businesses to integrate A2A payments securely and efficiently. This year, the key regulations to watch out for are PSD3 and IPR.
A2A payments are also becoming a core part of embedded finance. More platforms, apps, and financial services are integrating direct bank transfers, allowing businesses to offer A2A payments as a built-in feature. This means smoother checkouts, better cash flow, and a payment experience that feels native to the platform.