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CoverStory

bank, although most do so for paying bills.
Mastercard, Visa, will not be left behind Unlock Your

As has been reported in several investment news out-
lets, Mizuho SA analyst Dan Dolev sees pay-by-bank
as a potential threat to Mastercard and Visa. Dolev is Growth Potential
quoted by the website Seeking Alpha as saying,"At just
$0.05-0.06 cost per transaction for financial institu-
tions, FedNow offers an alternative to US debit inter- With a BCP Loan
change."

But the reality is that both card networks have been
pursuing pay-by-bank services of their own – services
that can exist in tandem with their card systems.

Mastercard and JPMorgan announced a pay-by-bank
product in 2023, powered by Mastercard's open bank-
ing technology and JPMorgan's ACH capabilities. The
solution is meant primarily for billers as an improve-
ment over traditional ACH collections. The telecom gi-
ant Verizon has been piloting the solution, Mastercard
said in a statement.

Visa has been applying its infrastructure, technology
and capabilities to build an A2A solution it intends to
deploy in the UK in early 2025. Like Mastercard, Visa
is targeting billers, such as utilities, rent and childcare
facilities. It also plans to target subscription services,
including digital streaming, gym memberships and
food boxes.

"Visa A2A will be based on an open system available
for all eligible banks and other industry partners to
join, and introduces standards, rules and a dispute
management service to help protect consumers and
further modernize open banking-based payments,"
Visa said in a statement. Payments will clear through
the UK's Faster Payment System, which features near
real-time settlement.

"Bank payments are a popular way to pay bills and
services but have remained largely unchanged since
the inception of direct debit 60 years ago," said Mandy
Lamb, managing director, Visa UK and Ireland. "We BOCA
want to bring pay-by-bank methods into the 21st cen- CAPITAL
tury and give consumers choice, peace of mind and a PARTNERS
digital experience they know and love."

Lamb added that Visa is "bringing our technology and
years of experience in the payments card market to cre- Get a loan from $100,000 to
ate an open system for A2A payments to thrive. Visa
A2A will ensure consumer-to-business bank transfer $5,000,000 for your ISO today
payments have similar levels of protection that con-
sumers are used to when using their cards."

Call Now: 844-531-4957
Patti Murphy, self-described payments maven of the fourth estate,
is senior editor at the Green Sheet. She also co-hosts the Merchant
Sales Podcast, and is president of ProScribes Ink. bocacapitalpartners.com

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