A2A Payments: Making Money Move Smarter

Please note that the information about the companies in this article was sourced from their respective websites as of January 2026. This information may be subject to change.

If you run a business in the UK or EU, you’re likely familiar with the monthly ritual: reviewing your payment processing statement, seeing the column for card scheme fees, interchange fees, and acquirer fees, and wondering if there isn’t a better way.

That ‘better way’ is already here, and it’s not a futuristic concept—it’s built on the very banking system we use every day. It’s called account to account payment, and it’s quietly revolutionising how money moves.

A2A payments aren’t just for online merchants. Banks use them for internal transfers, peer-to-peer apps rely on them for instant payouts, and digital wallets embed them for faster funding. But in this article, we’ll focus on their impact in e-commerce: helping businesses cut costs, speed up settlement, and give customers a more secure way to pay.

This guide will walk you through everything you need to know about A2A payments, with clear, practical insights to help you decide if it’s the right fit for your business.

Key Takeaways

• A2A payments eliminate card scheme fees, reducing transaction costs from 1.5-3.5% to just 0.1-0.8%, delivering significantly higher profit margins for businesses.
• Account to account payment processing offers near-instant settlements compared to 2-5 day card processing delays, dramatically improving cash flow and operational efficiency.
• A2A payment solutions provide enhanced protection through strong customer authentication whilst reducing fraud risk by 73% compared to traditional card payments.
• A2A transfers support everything from one-off e-commerce purchases to recurring subscriptions, making A2A payment processing ideal across industries like e-commerce, travelling, and SaaS.
• Platforms like Noda connect businesses to 2,000+ banks across 28 countries in the UK and EU, enabling seamless A2A integration with multi-currency support and simplified international payments.

Cutting Through the Jargon: What Exactly Are A2A Payments?

Let's start with the basics. What is A2A payment? It’s a simple concept.

Account to account (A2A) payments involve transferring money directly from one bank account to another without intermediaries like credit card companies. This method relies on banking infrastructure to move funds securely and quickly. Unlike card payments, which involve multiple parties and fees, A2A transfers streamline the process, making them ideal for both one-off and recurring transactions.

For a business, it means a customer can pay you directly from their bank account to your business bank account through a secure online portal, bypassing the need to enter card details. This is often facilitated through A2A in open banking, where regulations like PSD2 in Europe allow third-party providers to access bank data with customer consent. Open banking platform Noda, for example, uses this framework to offer A2A payment infrastructure that connects merchants to customers' banks effortlessly.

How Do A2A Payments Work?

So, what does this look like for a customer checking out on your website? The process is surprisingly seamless.

1. Checkout Selection: At the checkout page, the customer selects an option like “Pay by Bank” or “Bank Transfer”.
2. Bank Selection: They are then prompted to choose their bank from a list of supported institutions.
3. Secure Authentication: They are securely redirected to their own bank’s online login portal or mobile app. This is a crucial step—they authenticate the payment directly with their bank using their usual login details, PIN, or biometrics (like a fingerprint or facial recognition).
4. Consent and Confirmation: The customer reviews the payment details, gives explicit consent, and confirms the payment.
5. Instant Transfer: Funds are sent directly from their account to yours, typically in a matter of seconds. The customer receives confirmation, and the transaction is complete.

This entire flow, from selection to confirmation, is managed by a solution provider through a smooth A2A integration on your website.

There are two main ways A2A transactions take place:

• Push Payments: The payer initiates the transfer by “pushing” money to the recipient’s account. Think of sending a one-off payment via your bank app at checkout—it’s fast and under your control.
• Pull Payments: The recipient (often a business) “pulls” money from the payer’s account, usually with prior authorisation. This model powers recurring bills or subscription services, where payments happen automatically but with clear consent.

Both scenarios require strong customer authentication—as regulated by Europe's PSD2—meaning every payment is verified via two-factor authentication such as a password, biometric ID, or one-time codes, so security is top-notch.

Not All Transfers Are Created Equal: Types of A2A Payments

It’s helpful to understand that not every A2A transfer is the same. The main types include:

A2A in Open Banking

Open banking has revolutionised A2A payments by making them easier and safer through secure data sharing enabled by application programming interfaces (APIs). This advancement has given rise to a new form of account-to-account payment called Payment Initiation Services (PIS).

PIS are offered by authorised fintech companies known as Payment Initiation Service Providers (PISPs) under Europe’s regulatory framework called PSD2. These providers use APIs to securely access read-only customer data held by traditional banks and initiate payments directly from customers’ accounts on their behalf—always with the customer’s explicit consent.

Although many use the terms "A2A payments" and "open banking (PIS) payments" interchangeably, it’s important to understand they are not exactly the same. PIS specifically denotes a type of A2A payment that is powered by open banking technology, combining security, speed, and seamless integration to simplify online transactions.

Industries Benefiting from A2A Payment Solutions

What are A2A payments used for? They excel in scenarios requiring speed and low costs. Industries benefiting include:

1. E-commerce and Retail

Online retailers benefit from reduced transaction fees and lower chargeback risks. Worldpay's Global Payments Report 2024 shows that A2A transfers in e-commerce reduced processing costs by an average of 67% compared to premium credit cards.

A quick tip for E-commerce merchants: While you can save significantly by avoiding card interchange fees (which typically range from 0.2% - 1.5%+ depending on the card and region), it's important to understand the alternative cost structure. With Noda's A2A payment solution, you benefit from a transparent, low fixed fee, starting from 0.1%. This means the savings are especially substantial for high-value transactions, and you get the added advantage of near-instant settlement to keep your cash flow healthy.

2. Travel and Hospitality

High-value bookings benefit from lower percentage-based fees, whilst instant confirmation improves customer confidence.

3. Digital Services and SaaS

Software companies leverage A2A integration to reduce payment friction for enterprise clients, with many reporting improved cash flow due to faster settlement times.

4. Subscription Services

Recurring payment models excel with A2A payment processing due to improved success rates and reduced involuntary churn. Companies report 15-25% fewer failed payments when using direct bank transfers.

5. Entertainment

Real-time deposits, in-game purchases and payouts enhance user experience, whilst lower fees improve profit margins. Platforms benefit from A2A payment infrastructure due to the high volume of micro-transactions and the need for instant account funding.

A2A vs. Card Payments: Why the Shift?

Let’s compare A2A payment processing with traditional card payments:

Cost example: A merchant processing £10M in sales annually would pay roughly £250,000 in card fees (at 2.5%). With Noda, that could drop to under £10,000 (at 0.1%)—a saving of over £240,000.

A2A Payment Companies

Let’s explore some companies that offer A2A payment solutions for businesses. This will help you understand their features, benefits, and drawbacks, making it easier to choose the best option to streamline payments, cut costs, and enhance the customer experience.

1. Noda

Noda is an established provider of A2A payments via open banking. Its payment gateway supports card payments, payouts, and pay-by-bank options through a sophisticated Open Banking API, all with lower fees starting from 0.1%.

With a network connecting over 2,000 banks across 28 countries, Noda supports multiple currencies, including GBP, EUR, RON, HUF, SEK and NOK. The platform simplifies A2A integration with plugins for popular e-commerce platforms like OpenCart, WooCommerce, Magento, and PrestaShop.

Noda’s solutions include a streamlined checkout form, and acceptance recovery to reduce payment failures. For businesses with limited developer resources, Noda offers no-code options such as embedded payment links and QR codes. Additionally, advanced data tools provide secure bank login alongside customer lifetime value predictions via “Know Your Whales” (KYC insights). With transparent, transaction-based pricing, Noda is built to simplify payments and help businesses grow.

2. Truelayer

TrueLayer is one of the largest open banking providers in the UK A2A payment processing space and also operates in several other European markets. It offers a strong API-first platform for larger businesses that can dedicate development resources to build custom integrations.

TrueLayer’s focus is on sectors like financial services, iGaming, crypto, and larger e-commerce merchants. While it provides coverage across multiple European countries, the depth of that coverage varies by region, with the strongest presence in Western Europe.

For smaller businesses, TrueLayer may be less convenient, as it currently offers only limited e-commerce plugins (WooCommerce, Shopify and Magento, available in the UK only), making it more suitable for enterprises that prefer direct API connections. Its strength lies in scale, brand recognition, and advanced developer tools, but this comes with less emphasis on out-of-the-box, no-code solutions that simplify adoption for SMEs.

3. GoCardless

GoCardless specialises in recurring payments via direct debit, making it a solid choice for subscription-based businesses seeking reliable A2A transfers. It primarily supports pull payment models enabling merchants to automatically collect money from customer bank accounts. It is available for merchants based in 30+ countries, including the UK, much of the EU, Australia, New Zealand, Canada and the US.

While GoCardless boasts transparent pricing and strong compliance, it focuses less on push payments and does not support no-code tools or advanced payment recovery features. It integrates well with popular accounting and billing platforms but is less flexible for one-off account-to-account payments via open banking that are only available in the UK, Germany and Australia.

4. Brite Payments

Brite is an emerging player focusing strongly on instant A2A payments and pay-by-bank solutions, especially in the Nordic and wider European markets that currently exclude the UK. Its platform is user-friendly with a straightforward API designed to deliver near-instant settlements.

Brite excels at push payments for fintechs, charities, igaming and e-commerce but lacks the comprehensive pull payment and subscription support that GoCardless offer. Its strength in the Nordic region and emphasis on instant settlement capability make it attractive for industries where fast access to funds is crucial, though its geographic coverage is narrower than global players.

Ready to Implement A2A Payment Solutions for Your Business?

The shift to A2A payments is not a distant trend; it is happening right now. The UK's Open Banking ecosystem is maturing, with 13.3 million active users as of March 2025, and payment volumes growing by 70% year-on-year. The dominance of cards is being challenged by this new, more efficient, and cost-effective method. By partnering with Noda, you can position your business at the forefront of this revolution.

Noda offers a proven, user-friendly, and secure A2A payment infrastructure that e-commerce merchants can trust to meet today’s payment challenges—making switching to smart account-to-account payments a confident step forward.

Contact Noda's specialists to discover how account-to-account payment processing can reduce costs and improve customer experience. Our team provides comprehensive support from initial consultation through full deployment, ensuring seamless integration with your existing systems.