Visa completes first A2A variable recurring payment in UK

Visa has completed the UK’s first commercial variable recurring payment (cVRP) using its new account-to-account (A2A) framework, marking a decisive moment in the modernisation of everyday payments.

First A2A variable recurring payment in UK

The trial — conducted with Kroo Bank, the energy supplier Utilita and Open Banking platform Tink — demonstrated an energy bill being paid directly from a bank account in real time.

For an industry long dependent on Direct Debit, the move signals the emergence of a credible alternative built for a faster, more transparent digital economy.

Direct Debit remains the backbone of UK bill payments, but it is a system rooted in an era before mobile banking and real-time balances. Consumers typically lack visibility over when funds will be collected and have limited control in the event of disputes.

Visa’s own research suggests the appetite for change is strong: six in ten consumers say they would be willing to try a new bill-payment method if it offered clearer information and stronger protections.

A modernised model for recurring payments

Visa A2A aims to provide that upgrade. The model layers card-style safeguards — including instant payment confirmation, transparent mandates and a structured dispute framework — onto an Open Banking powered push payment flow.

The inclusion of the “Secured by Visa” trustmark is designed to reassure consumers that protections familiar from card payments will apply in an A2A environment.

The first transaction illustrates how the model knits together multiple actors.

Tink acted as the payment initiator, performing a balance check and triggering the payment; Kroo Bank executed the Faster Payments transfer; Visa orchestrated the rules, liability framework and consumer-experience standards; and Utilita generated the cVRP mandate through its customer app.

For merchants, the system promises faster settlement, improved reconciliation and more predictable cash flow. For consumers, it offers a real-time view of what is being paid, when, and under what authorisation.

Industry sets the stage for broader adoption

Visa is positioning A2A as a market-ready solution capable of scaling across bills, subscriptions and low-risk e-commerce.

Crucially, it aligns with the UK’s National Payments Vision, which prioritises consumer protection, competition and innovation in Open Banking.

Unlike experimental VRP pilots of recent years, Visa A2A is intended to present a commercial model that is sustainable for banks, fintechs and merchants.

Early partners are bullish. Kroo Bank calls the development “the next evolution of recurrent payments”, while Tink sees it as a moment that sets new speed and transparency standards.

Utilita’s technology chief, Ian Burgess, described the milestone as a “man on the moon moment” for A2A payments — the point at which the technology becomes not only possible but practical.

With multiple transactions already processed and further rollouts expected in 2025, Visa’s entry adds significant weight to the UK’s attempt to unlock Open Banking’s long-promised potential: a competitive, secure alternative to Direct Debit for the digital age.