Visa completes first recurring A2A transaction in the UK

The transaction, made to demonstrate an energy bill being paid to Utilita, was enabled through the Visa A2A open industry model.

While Brits commonly manage recurring bills and subscriptions using Direct Debit, Visa research shows that 60% UK consumers say they would likely try a new method – if one were available.

The card giant says its A2A offering will provide this alternative for both businesses and consumers. Consumers get immediate payment confirmation and greater transparency and control to managing recurring payments.

Meanwhile, Visa A2A promises enhanced consumer protections, similar to those provided with card payments, and a dispute resolution mechanism, that helps people get their money back if something goes wrong.

The model is built on the principles of open banking, and banks and industry partners are joining to introduce standards and rules for cVRPs. Visa A2A is built to be extensible across all use cases and sectors, with a key focus on bills, subscriptions and low risk ecommerce.

The first payment saw Visa-owned open banking specialist Tink initiate the transaction on behalf of the payer, with Kroo Bank then initiating the payment directly from their bank account, sent in real-time via the UK’s Faster Payments Service.

Then, Visa orchestrated the transaction through its A2A solution, providing the operating model, the liability and dispute framework and the user experience guidelines, before energy firm Utilita demonstrated the creation of the commercial variable recurring payment mandate from its app.

Mark Wilcocks, VP, head, products and solutions, Visa UK & Ireland, says: “Today marks a major milestone in UK payments innovation with the first commercial Variable Recurring Payment transaction powered by Visa A2A. This breakthrough demonstrates how industry collaboration is transforming the way consumers and businesses manage recurring payments.

“For consumers, it means greater control, transparency, and security when paying bills – no more surprises or delays. For merchants, it unlocks faster settlement, improved cash flow, and a trusted payment experience for their customers.”