Visa completes first UK cVRP for bills with A2A payment model
Visa has completed the first commercial variable recurring payment (cVRP) using its Visa A2A account-to-account payment solution in the UK. The transaction was processed in partnership with Kroo Bank, Tink, and Utilita, demonstrating a new approach to paying regular household bills.
Payment process
The transaction used Visa's A2A open industry model. Tink initiated the payment, acting on behalf of the customer and checking funds before starting the payment flow. Kroo Bank served as the payer's financial institution, sending the payment in real time via the Faster Payments Service. Visa orchestrated the transaction, ensuring liability and dispute frameworks were applied, as well as user experience guidelines branded with the 'Secured by Visa' trustmark. Utilita, the beneficiary, created the cVRP payment mandate within its app, allowing customers to manage utility bills and top-ups securely and quickly.
Consumer protections
The company's A2A solution incorporates protections familiar from card payments. This includes immediate payment confirmation, enhanced visibility for consumers, and the ability to dispute transactions if necessary. The approach aims to address concerns associated with traditional Direct Debit, where customers often lack clarity about payment timing and amounts, and must rely on less robust dispute processes.
Market context
Direct Debit remains widely used for recurring payments in the UK. However, Visa's consumer research indicates that 60% of UK respondents are open to trying new methods for paying bills. This points to a demand for digital-first, flexible solutions with immediate feedback and security credentials.
Industry model
Visa A2A is framed as an open banking-based model designed to work with banks and industry partners to standardise and secure the cVRP process. The solution aims to cover various use cases, starting with bills and subscriptions and with a future focus on low-risk eCommerce.
Partner perspectives
"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. We congratulate everyone involved in this milestone and extend our thanks to our partners Kroo, Tink, and Utilita for their commitment to driving payments innovation in the UK," said Mark Wilcocks, VP Head of Product & Solutions, Visa UK & Ireland.
"At Kroo, we're proud to be part of a major step forward in how the UK moves money. By making recurring payments faster, safer, and more transparent, we're giving people and businesses real-time control over their finances. This marks the next evolution for recurrent payments - the beginning of a new era in everyday banking, and we're proud to be leading the way," said Danny Haynes, Chief Product Officer, Kroo.
"By powering the first cVRP transaction with Visa A2A, Tink is helping to set new standards for speed, security, and transparency in recurring payments. This is a key milestone, but it's just the start for Visa A2A and the potential impact of this transformative solution. More choice and control is always good news for consumers and businesses," said Ian Morrin, Head of Payments, Tink.
"Our commitment to technological leadership has always focused on empowering consumers, and payments are at the heart of that mission. That's why we're thrilled to have played a role in this groundbreaking achievement... a true 'man on the moon' moment for the evolution of account-to-account (A2A) payments. It's important our customers have the same trusted security and protections they've come to expect from their cards," said Ian Burgess, Chief Technology Officer, Utilita.
