.Nurphoto|Nurphoto|Getty ImagesVisa stated it considers to introduce a dedicated company for bank transactions, avoiding charge card and also the standard straight money process.Visa, which alongside Mastercard is among the planet's most extensive memory card networks, claimed Thursday it plans to launch a committed service for account-to-account (A2A) settlements in Europe next year.Users will be actually capable established direct money u00e2 $ " deals that take funds straight coming from your bank account u00e2 $ " u00c2 on vendors' ecommerce outlets along with merely a couple of clicks.Visa said customers are going to manage to keep track of these repayments much more simply as well as increase any sort of issues through clicking on a switch in their financial app, giving them a similar amount of defense to when they utilize their cards.The service should aid folks handle complications like unwarranted auto-renewals of subscriptions, by making it much easier for folks to turn around direct money transactions and obtain their cash back, Visa claimed. It will not initially use its A2A company to things like TV streaming solutions, health and fitness center memberships and also meals boxes, Visa added, but this is actually prepared for the future.The product are going to at first release in the U.K. in very early 2025, with succeeding releases in the Nordic area as well as elsewhere in Europe later on in 2025. u00c2 Direct money headachesThe concern presently is that when a consumer establishes a settlement for points like power expenses or even child care, they need to complete a straight money form.But this offers customers little control, as they have to discuss their financial institution details and also individual details, which isn't safeguard, and also have actually limited control over the settlement amount.The available banking movement is actually uplifting individuals to ask who possesses their financial dataStatic direct money, for instance, require allowance notice of any type of improvements to the volume taken, meaning you need to either cancel the straight money as well as set up a brand-new one or even execute a one-off transfer.With Visa A2A, customers are going to be able to set up adjustable repeating settlements (VRP), a brand-new sort of remittance that enables individuals to create and also deal with recurring payments of differing amounts." Our team want to bring pay-by-bank approaches into the 21st century and also offer consumers selection, confidence as well as a digital experience they know and like," Mandy Lamb, Visa's dealing with director for the U.K. and also Ireland, mentioned in a statement Thursday." That is actually why our experts are actually collaborating with UK financial institutions and available financial players, taking our technology and years of expertise in the remittances card market to generate an open body for A2A remittances to thrive." Visa's A2A product relies upon a technology called open banking, which requires finance companies to deliver 3rd party fintechs along with access to consumer banking data.Open banking has actually obtained level of popularity over the years, specifically in Europe, with the help of regulatory reforms to the banking system.The technology has actually permitted brand-new payment services that may connect directly to customers' savings account and license payments on their account u00e2 $ " u00c2 gave they have actually acquired permission.In 2021, Visa obtained Tink, an open banking company, for 1.8 billion europeans ($ 2 billion). The package came on the heels of a deserted bid coming from Visa to buy competing available banking agency Plaid.Visa's acquistion of Tink was actually viewed as a way for it to progress of the hazard coming from developing fintechs developing products that enable consumers u00e2 $ " u00c2 and also vendors u00e2 $ " u00c2 to prevent spending its own memory card purchase fees.Merchants have long complained Visa and Mastercard's credit report and also debit card costs, charging the firms of blowing up so-called interchange expenses as well as barring them from pointing individuals to less costly alternatives.In March, the two business reached a historic $30 billion negotiation to lessen their variation costs u00e2 $" u00c2 which are actually taken out of a company's bank account when a buyer uses their memory card to pay for something.Visa didn't share information on how it would certainly monetize its own A2A solution. By offering business the alternative to avoid memory cards for remittances, there's a risk that Visa can potentially cannibalize its personal memory card business.For its own part, Visa told CNBC it is actually and regularly has actually been paid attention to permitting the very best ways for folks to pay for and also get paid, whether that is actually through a memory card or non-card deal.