Lisa Scott
CEO, Banked Europe
Account-to-account payments are quick and secure ways to pay that benefits customers and merchants alike, says Lisa Scott, CEO Europe of global payments network, Banked.
What are account-to-account (A2A) payments?
There are many players in the financial industry offering account to-account payment tech. Our A2A product is called ‘Pay by Bank’ because you use it to pay for a product or service directly from your bank account. Essentially, we create a secure connection to your banking app that allows you to authorise payments via the biometrics you
already have — simply and efficiently.
How is A2A being used at present?
People are using it to pay their tax bills and top up their neobank accounts, but we want to make it more prolific. A good example is e-commerce. If you use your debit card to pay for a product online, you have to enter your 16 digits, CVV number, expiry date and billing address. However, if you use A2A, payment comes from the same place (ie. your bank account), but you simply open the banking app on your phone with your biometrics. You authorise the payment — and it’s done. You could use it to make in person digital payments, too.
Are A2A payments safer than mainstream payment methods?
Yes because you don’t share any of your financial information with anyone online. You’re also not sharing your card number or creating a new account, requiring yet another set of login details to track and monitor, so it’s highly secure. And because you’re using already-established biometrics to pay via your banking app, there’s no need for additional authorisation steps such as a six-digit code sent via SMS.
Many customers are canceling direct debits with utility companies because they want to maintain control of when payments are made from their bank account
Can A2A offer consumers rewards and benefits?
There are so many back-office efficiencies with A2A that merchants can pass benefits onto their customers as an incentive to try it. For example, they might offer higher cashback or double points on a loyalty programme.
Does A2A give users more control over finances?
Many customers are canceling direct debits with utility companies because they want to maintain control of when payments are made from their bank account and have more transparency. But that means they have to make payments over the phone, which is time-consuming, or they log on to a company portal, which means remembering a password and taking additional steps to complete the transaction. Or they do it via internet banking, which requires putting in a reference. A2A is a quicker, simpler and safer alternative for the consumer and service provider — empowering users to have visibility into where their money is going in real time.