.Nurphoto|Nurphoto|Getty ImagesVisa claimed it plans to launch a devoted service for bank transactions, avoiding bank card and the typical direct debit process.Visa, which along with Mastercard is just one of the planet's biggest memory card networks, said Thursday it prepares to introduce a dedicated service for account-to-account (A2A) payments in Europe next year.Users will certainly be capable established direct money u00e2 $ " transactions that take funds directly coming from your checking account u00e2 $ " u00c2 on sellers' ecommerce retail stores with only a couple of clicks.Visa pointed out customers will have the ability to observe these repayments much more effortlessly and also increase any type of concerns by clicking a switch in their financial application, providing a comparable degree of defense to when they utilize their cards.The service should assist folks handle problems like unauthorized auto-renewals of subscriptions, by making it less complicated for individuals to turn around straight money purchases and acquire their refund, Visa pointed out. It won't at first apply its A2A company to factors like TV streaming solutions, health club registrations as well as food packages, Visa incorporated, but this is actually prepared for the future.The item are going to in the beginning launch in the U.K. in early 2025, along with succeeding launches in the Nordic area and also in other places in Europe eventually in 2025. u00c2 Direct money headachesThe complication presently is actually that when a buyer sets up a settlement for factors like utility expenses or child care, they require to fill out a direct money form.But this uses buyers little bit of command, as they need to discuss their bank information as well as personal details, which isn't secure, as well as have actually limited command over the repayment amount.The open financial activity is motivating buyers to ask who possesses their banking dataStatic straight debits, for example, call for accommodation notice of any kind of changes to the quantity taken, indicating you must either call off the straight debit and also established a new one or carry out a one-off transfer.With Visa A2A, individuals are going to be able to establish changeable reoccuring repayments (VRP), a brand-new type of remittance that makes it possible for people to make as well as manage recurring remittances of varying quantities." Our team intend to deliver pay-by-bank approaches right into the 21st century as well as give customers selection, peace of mind and a digital expertise they understand and also really love," Mandy Lamb, Visa's handling director for the U.K. and also Ireland, claimed in a statement Thursday." That is actually why we are collaborating with UK banking companies and open banking gamers, bringing our technology and also years of expertise in the remittances card market to develop an available unit for A2A payments to thrive." Visa's A2A item counts on a technology contacted open banking, which requires finance companies to supply third-party fintechs with accessibility to consumer financial data.Open banking has obtained popularity over the years, specifically in Europe, due to governing reforms to the banking system.The technology has actually made it possible for brand new remittance companies that can easily link straight to consumers' savings account and license settlements on their account u00e2 $ " u00c2 gave they've acquired permission.In 2021, Visa got Tink, an open banking solution, for 1.8 billion euros ($ 2 billion). The offer began the heels of an abandoned proposal from Visa to purchase competing open banking agency Plaid.Visa's purchase of Tink was actually viewed as a method for it to advance of the threat coming from surfacing fintechs creating products that enable consumers u00e2 $ " u00c2 and sellers u00e2 $ " u00c2 to avoid paying its card purchase fees.Merchants have long regreted Visa and Mastercard's credit and also debit card expenses, accusing the business of pumping up supposed variation fees and stopping them coming from guiding individuals to much cheaper alternatives.In March, both providers reached a famous $30 billion settlement deal to reduce their interchange fees u00e2 $" u00c2 which are actually taken out of a seller's financial account when a buyer uses their memory card to pay for something.Visa failed to share information on exactly how it would certainly monetize its A2A service. Through providing merchants the alternative to bypass cards for settlements, there is actually a threat that Visa could potentially cannibalize its personal memory card business.For its own part, Visa said to CNBC it is actually as well as consistently has been concentrated on allowing the greatest means for people to pay and make money, whether that is actually via a card or even non-card deal.