What is an Account-to-Account (A2A) Payment?

In simple terms, an A2A payment is the movement of money from a payer's bank account to a service provider or a merchant's bank account. 

A2A payments do not use intermediaries such as a debit or credit card, which means the funds settle quicker and fees are often lower. When performing an A2A payment, the Payment Service User (PSU) is securely redirected to their online banking app or website, where they can authorise the payment.

How do A2A payments work?

A2A payments, also referred to as “Pay by Bank” are powered by Open Banking. 

  1. The merchant or service provider creates a payment request for the payer. 
  2. The request is presented to the payer in the form of a link, button or QR code that the payer will click, scan and follow. This allows the payer to choose the bank they wish to pay from. 
  3. Next, the payer is securely redirected to their online or mobile banking. 
  4. After having been securely authenticated, the payer authorises the payment in one click with no need to type any details. 
  5. Funds are then transferred immediately using the real-time banking rails.

This is what the journey looks like.

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