Ash Kalra’s Post

Account-to-account (A2A) Payments emerge as a compelling alternative to the card payments landscape. A2A Payments 🆚 Card Payments: Despite their existence prior to open banking, A2A payments gained mainstream traction with the advent of regulated third-party financial service providers. Regulatory developments such as the SEPA Payment Account Access scheme (SPAA) invite any EU bank or regulated FinTech to offer A2A payments and data services via APIs, benefiting merchants and consumers alike. Open finance data sharing will further expand A2A models, enabling common APIs for payments between service providers and fostering an interconnected ecosystem of instant payment apps. Strong customer authentication measures and standardised APIs will facilitate seamless payments across platforms. See the infographic below for step-by-step payment journeys made by PwC 👇 Source/full report: https://lnkd.in/d9pW6ZFn Find this helpful? [ 𝗿𝗲𝗽𝗼𝘀𝘁 ] Anything to add about this subject? [𝗶𝗻𝘃𝗶𝘁𝗲𝗱 𝘁𝗼 𝗰𝗼𝗺𝗺𝗲𝗻𝘁] Nice story, Marcel. Next! [ 𝗹𝗶𝗸𝗲 ] 

Account-to-Account Payments (A2A) on the Rise A2A payments have been around, but they’ve gained new attention with Open Banking and regulated third-party providers. New regulations like the SEPA Payment Account Access Scheme (SPAA) allow EU banks and FinTechs to offer A2A payments through APIs. This means banks and FinTechs can provide direct account-to-account payments and data services. It’s a great benefit for both merchants and consumers. Open Finance data sharing will expand A2A payments even more. It will allow quick payments between different providers. This creates a network of instant payment apps. Strong authentication and standard APIs will make transactions smooth across platforms. How A2A Payments Work: 1/ The payer gives consent to a third-party provider (TPP) to start a payment and shares payment details. 2/ The TPP sends the payment request via an SPAA API with secure customer authentication. 3/ The payer’s bank processes the payment. 4/ The payee’s bank receives the funds. A2A payments are set to make transactions faster, more connected, and simpler for everyone involved! #Innovation #Fintech #Banking #OpenBanking #OpenFinance #API #TPPs #FinancialServices #Payments #DigitalPayments #A2A

Excellent interview on the future of A2A payments, I would like to invite you to read it. As these technologies become more widespread, customers will become more familiar with and trust A2A transactions. The A2A era promises a more efficient, cost-effective and secure payments landscape. With the further development and adoption of instant payment systems and standardised services, A2A payments have the potential to become a cornerstone of the European payments ecosystem. #A2A #Bizum

Account-to-Account (A2A) payments are changing the way funds are moved between bank accounts, bringing many benefits to both consumers and businesses. A2A payments are electronic transfers from one bank account to another, bypassing traditional payment methods. With the rise of open banking, third party services can securely connect to users' accounts via APIs, making these transactions faster and more accessible. A2A payments can be categorised as 'push' or 'pull' transactions. In a 'push' transaction, the payer initiates the transfer, while in a 'pull' transaction, the recipient requests the payment and awaits the payer's approval. These payments are used in a variety of contexts, including Business-to-Business (B2B), Business-to-Consumer (B2C), Peer-to-Peer (P2P), Consumer-to-Business (C2B) and even personal transfers between accounts (Me-to-Me). For merchants, A2A payments offer wider customer reach, lower transaction costs and faster settlement. For consumers, A2A payments offer a better user experience with enhanced security features such as multi-factor authentication and faster transactions. With a projected growth of 13% by 2026, A2A payments will dominate markets such as Finland, Poland and Malaysia. FedNow in the US is another milestone that promises to further expand the use of A2A. (Image by TokenIo) #A2APayments #FinTech #DigitalPayments #OpenBanking #FutureOfPayments #FinancialInclusion

Local and Regional A2A Payments Schemes Let's dive in: A2A Payments or bank-to-bank transfers are a direct way to transfer money between bank accounts, free of additional payment intermediaries. However, with global regulation lacking, each country imposes its own rules and restrictions, and the process remains somewhat difficult. In this context, there is a need for third-party players to step in and help facilitate transactions between different accounts in the same country – and, where the infrastructure allows it, expand towards other geographies as well. One major difference when looking at the categories of A2A payments and Open Banking payments is that the first runs on legacy banking rails, often built before the digitalization of the world and hard to scale and align across borders. Thus, most A2A players keep their business local. Bizum in Spain, BLIK in Poland, MyBank in Italy, and iDEAL in the Netherlands have significantly increased their customer base. They are no longer considered emerging local payment methods but default ways to send and receive money instantly, with access only to a mobile phone number and a local bank account. I highly recommend downloading and reading the complete #fintechreport by The Paypers for more interesting info on this topic: https://lnkd.in/e5mD7UXY Find this helpful? [ 𝗿𝗲𝗽𝗼𝘀𝘁 ] Anything to add about this subject? [𝗶𝗻𝘃𝗶𝘁𝗲𝗱 𝘁𝗼 𝗰𝗼𝗺𝗺𝗲𝗻𝘁] Nice story, Marcel. Next! [ 𝗹𝗶𝗸𝗲 ] 

In 2024, we're still paying 3.5% fees just to accept card payments. Meanwhile, the technology for instant bank-to-bank transfers at 4 cents per transaction already exists. This massive cost gap explains why A2A payment volume is about to explode - projected to hit 60 billion transactions by 2029. ⚡ The current wave of Open Banking initiatives is helping A2A payments bypass traditional card systems completely ⚡ APIs and Variable Recurring Payments (VRPs) are making A2A as flexible as cards for merchants ⚡ The UK has over 11 million Open Banking users while markets without proper regulations still rely on costly card networks ⚡ Instant payment systems like FedNow are charging just pennies compared to the dollars merchants lose on card fees ⚡ SMEs are seeing better cash flow with instant settlements, reducing their need for expensive loans 💭 My take: Having worked in payments, I've seen firsthand how card fees eat into merchant margins. The shift to A2A is about fundamentally changing who controls and profits from payment infrastructure. But this transition needs regulatory frameworks that encourage competition while ensuring security and reliability. There’s still work to do, but the potential here is too big to ignore. #OpenBanking #A2A #DigitalPayments #Fintech

Have you noticed the buzz around A2A payments lately? 🌏 While we've long relied on card payments for their convenience and broad acceptance, account-to-account (A2A) payments are making waves, challenging the status quo. Let's break it down. Card payments are your reliable go-to for quick transactions. Swipe, tap, or enter your details, and you're done. But with every convenience, there's a cost. Intermediaries like banks and card networks add fees that can add up, especially for businesses. Here's where A2A payments step in. Direct transfers between bank accounts—bypassing those intermediaries—mean lower fees, faster clearing, and often enhanced security. It's a streamlined process making transactions more efficient and less costly. So, where is A2A gearing up? Countries like the Netherlands, with its iDEAL system, are already reaping the benefits. The Nordics, too, have embraced real-time A2A payments through services like Swish and MobilePay. India, with the Unified Payments Interface (UPI), is another great example of A2A's transformative power, boosting financial inclusion and cashless transactions. As more regions recognize the potential, A2A payments are set to play an increasingly pivotal role in the payments ecosystem. How do you see A2A shaping the future of payments in your country? Let's dive into the conversation! 💬 #A2APayments #DigitalBanking #FutureOfPayments #FintechInnovation #askpavel #payments #hedgewiz

The first chapter of The Paypers’ Unlocking the Potential of A2A Payments Report 2024 📑 https://lnkd.in/dFPNdGus delineates the current state of the A2A payments landscape, discussing its #evolution in the past years, the role played by Open Banking in furthering the payment type, its #challenges and #benefits, as well as future expectations and #trends. 📢 Don’t miss out on learning more about one of the hottest topics in #payments today and download the #report! ➡  https://lnkd.in/dFPNdGus #A2Apayments #OpenBanking #paymentindustry #paytech #fintech #fintechindustry #financialservices #banktobanktransfers #paymentmethods #ecommerce #paymenttypes #epayments #instantpayments #realtimepayments #digitalisation #ThePaypers

This year, The Paypers has crafted numerous reports, including the inaugural edition of the ‘Unlocking the Potential of A2A Payments Report 2024 – Changing the Way We Pay and Get Paid’, which contains a global overview of A2A payment methods. ➡️ https://lnkd.in/dzHgWe6W The report taps into the fast, ever-expanding A2A payments industry, aiming to be the ultimate source of information for businesses looking to grow their consumer base. That’s why, apart from the insightful contributions from our collaborators, we have included a desk-researched #infographic on the main players activating within this space. With this graphic representation, we have sought to highlight two key points, namely local and regional A2A schemes and Open Banking-based A2A payments and technology providers. Without further ado, we invite you to read this short article, which offers insight into the main differences between these players. And if we’ve piqued your interest, download our free report, whose link you can find at the end! ➡️ https://lnkd.in/dzHgWe6W #realtimepayments #paymentprocessing #merchants #PSP #infrastructure #APMs #A2Apayments #OpenBanking #research #report #moneytransfer #ecommerce #transactions #bankingrails #digitalisation #paytech #API #paymentmethods #LPMs #instantpayments #fintech #mobilepayments #ThePaypers

🔽 Have you already downloaded your free copy of the ‘𝐔𝐧𝐥𝐨𝐜𝐤𝐢𝐧𝐠 𝐭𝐡𝐞 𝐏𝐨𝐭𝐞𝐧𝐭𝐢𝐚𝐥 𝐨𝐟 𝐀2𝐀 𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬 𝐑𝐞𝐩𝐨𝐫𝐭 2024 – 𝐂𝐡𝐚𝐧𝐠𝐢𝐧𝐠 𝐭𝐡𝐞 𝐖𝐚𝐲 𝐖𝐞 𝐏𝐚𝐲 𝐚𝐧𝐝 𝐆𝐞𝐭 𝐏𝐚𝐢𝐝’ by The Paypers? 💡 For finance professionals and anyone fascinated by #payment #trends and innovations, this #report is an invaluable resource for expanding your insights. 🤝 At #MyBank, as a pan-European 𝐚𝐜𝐜𝐨𝐮𝐧𝐭-𝐭𝐨-𝐚𝐜𝐜𝐨𝐮𝐧𝐭 𝐩𝐚𝐲𝐦𝐞𝐧𝐭 𝐬𝐨𝐥𝐮𝐭𝐢𝐨𝐧, we were particularly pleased to contribute to this report with the expertise of our CEO Tarik Zerkti. 📌 On page 25, he delves into the evolution of #A2A payments specifically within the #ecommerce sector, highlighting both the opportunities and the challenges that the industry faces. ➡️ Check out the latest article on the The Paypers and download the full report to learn more: https://lnkd.in/dzHgWe6W Estera Sava #digitalpayments #account2account #A2A #alternativepayments