Visa, Kroo, Utilita and Tink have successfully executed the United Kingdom’s first A2A cVRP transaction, showcasing a new approach to recurring payments that comes with enhanced consumer protections.

This demonstration is part of Visa’s broader strategy to develop an A2A solution based on Open Banking principles. The model establishes guidelines aimed at facilitating recurring payments and includes dispute mechanisms similar to those found in card transactions. According to Visa’s research, a significant number of UK consumers are open to exploring new ways to pay bills, indicating a potential market for alternative methods to Direct Debit.

Introduction of an Innovative A2A Framework

In the test transaction, Tink acted as the payment initiator, performing balance checks and initiating the flow. The authorization and transfer were handled by Kroo Bank through the Faster Payments network, with Visa orchestrating the process via its A2A infrastructure. Utilita utilized its app for setting up mandates for both top-ups and off-session billing.

Visa representatives emphasized that this transaction marks a significant shift in recurring payment handling, aiming to offer better visibility, faster processing times, and consistent consumer protections on both sides of the transaction. Officials from Kroo, Tink, and Utilita highlighted that the initiative provides an opportunity to modernize recurring payments by enhancing speed, safety, and user control compared to traditional methods.

Visa intends to extend A2A beyond utilities and subscriptions, with plans to support e-commerce transactions in the future. The rollout is expected to contribute to the UK’s broader goals of promoting secure and flexible payment options within its updated national payments landscape.