What Is A2A Payment? How Account-to-Account Payments Are Transforming Digital Commerce

In the last few years, A2A payments (Account-to-Account payments) have become one of the hottest topics in
the payments and fintech space. From e-commerce checkout to recurring B2B billing and crypto/FX on-ramps, merchants are
actively looking for alternatives to expensive card schemes and slow, opaque bank transfers.

In this article, we explain in simple terms what A2A payments are, where this trend comes from, how the market is evolving,
and how Yowpay positions itself as a SEPA-native A2A solution for European merchants.

What Are A2A Payments?

A2A payments are payments where money moves directly from the bank account of the payer to the bank account of
the payee. There is no card scheme in the middle. Instead, the payment is executed via:

• Traditional bank transfer rails (e.g. SEPA Credit Transfer, SEPA Instant in Europe)
• Open Banking / PSD2 payment initiation (PIS) flows
• Other local account-to-account schemes (e.g. Faster Payments in the UK, local instant schemes in various countries)

In practice, an A2A payment looks like this: the customer selects “Pay by bank” or “Bank transfer” at checkout, confirms
the payment from their banking app, and funds move directly between the two bank accounts — often in seconds when instant
rails are used.

Key Characteristics of A2A Payments

• No card networks: no Visa/Mastercard/Amex involved.
• Lower fees: pricing is typically based on a flat fee per transaction or a very low % fee.
• Faster settlement: especially over instant payment schemes like SEPA Instant.
• Reversible only via refund: no chargebacks like card payments (good for merchants, clearer expectations for customers).
• Bank-grade authentication: SCA (Strong Customer Authentication) via the user’s own banking app.

Where Do A2A Payments Come From?

A2A payments are not completely new: classic bank transfers have existed for decades. What changed is the user experience
and the regulatory framework.

1. The Role of SEPA and Instant Payments

In Europe, the SEPA (Single Euro Payments Area) harmonised euro transfers across EU and some non-EU countries.
SEPA Credit Transfers allowed low-cost, cross-border transfers within one business day. More recently, SEPA Instant Credit
Transfer (SCT Inst) made it possible to move funds in up to 10 seconds, 24/7/365.

This created the perfect infrastructure for real-time A2A payments: if money can move in seconds between any two IBANs,
why should merchants wait days for settlement or pay high card interchange fees?

2. PSD2 and Open Banking Payment Initiation (PIS)

The second key driver is PSD2 and the rise of Open Banking in Europe. Payment Initiation Services (PIS)
allow a licensed third party to initiate a bank transfer on behalf of the customer, directly from their bank account, with
explicit consent.

Instead of manually typing IBANs and payment references, the customer:

1. Chooses “Pay by bank” at checkout
2. Selects their bank
3. Is redirected to their banking app or online banking
4. Approves the pre-filled transfer via SCA

This removes friction and errors and provides a “card-like” UX but on top of bank transfer rails — which is exactly what
A2A payments are about.

3. Merchants Pushing Back Against Card Costs and Chargebacks

For many verticals — FX and crypto exchanges, gambling and betting, high-ticket B2B, travel, subscription platforms — card
payments are:

• Too expensive (MDR + scheme fees + cross-border fees)
• Too risky (chargebacks, fraud, friendly fraud)
• Too slow to settle, especially with rolling reserves

A2A payments address these pain points by providing:

• Direct settlement to the merchant’s business IBAN
• Clear, push-only payment flows (no chargeback risk)
• Much lower fees and transparent pricing

How Is the A2A Payments Market Evolving?

The A2A market is moving very fast, especially in Europe and the UK. Several trends are worth noting:

1. “Pay by Bank” at Checkout Is Becoming Mainstream

Large PSPs, banks and big tech players are all promoting “Pay by bank” options at checkout. In some countries, A2A has
already captured a significant share of e-commerce volume, often starting with:

• High-ticket purchases (travel, electronics, B2B invoices)
• Recurring payments (subscriptions, utilities)
• Top-ups and on-ramps (FX, crypto, wallets, gaming)

While cards remain dominant for small everyday purchases, A2A is rapidly taking share where cost and settlement speed
matter most.

2. Instant Payments as the Default

Regulatory initiatives in the EU are pushing instant payments to become the default rail for euro transfers.
When instant payments are widely available and priced fairly, they unlock real-time A2A experiences:

• Merchants see funds in seconds (not days)
• Customers get immediate confirmation and access to services
• PSPs and orchestration platforms can build “card-like” success/failure logic on top of SEPA

3. Specialized A2A Orchestration Platforms

A new category of providers is emerging: A2A and SEPA orchestration platforms. Instead of just offering
one Open Banking connection or a single IBAN, they:

• Manage multiple SEPA flows (manual transfers, QR/EPC, PIS, SCT Inst)
• Provide dedicated IBANs per merchant or per end-customer
• Automate reconciliation and notifications
• Cover high-risk and niche verticals that traditional banks and PSPs often refuse

This is precisely where Yowpay focuses its value proposition.

Yowpay’s Position in the A2A / SEPA Landscape

Yowpay is built around a simple idea: make SEPA and A2A payments usable as a modern checkout and
collection tool, not just as a “manual bank transfer” option buried somewhere in the payment page.

1. Three SEPA Channels Instead of Open Banking Alone

Many “Pay by bank” providers rely solely on Open Banking/PIS. When the user’s bank is down, SCA fails, or the institution
is not supported, the payment simply fails.

Yowpay takes a different approach, by orchestrating three SEPA-based A2A channels:

1. Manual SEPA transfer with smart, pre-filled instructions and unique references
2. QR / EPC flows where the customer scans and approves the pre-filled SEPA payment from their banking app
3. Open Banking PIS when available and convenient for the payer

This multi-rail strategy drastically improves:

• Conversion: if one rail fails, another can be used
• Coverage: works even when Open Banking coverage is incomplete
• Resilience: less dependence on a single API or scheme

2. Dedicated Business IBANs and Multi-Country Reach

A2A payments work best when merchants have dedicated IBANs and can segregate funds by use case, vertical or end-user.
Yowpay provides business IBANs and multi-IBAN setups (e.g. DE, LT, MT, UK, etc. depending on the banking partners)
so that merchants can:

• Receive A2A payments directly in their name
• Segment collections for different lines of business or regions
• Offer local-looking IBANs to improve trust and acceptance

3. Focus on High-Value and High-Risk Verticals

Many banks and PSPs still avoid or heavily restrict certain verticals: crypto exchanges, FX, trading platforms,
gambling, iGaming, adult, CBD, etc. These merchants often have:

• High average transaction values
• Complex compliance requirements (KYC/KYB, AML, source of funds)
• Challenging chargeback and fraud profiles when using cards

Yowpay is designed to serve exactly these kinds of businesses with transparent, SEPA-based A2A flows, giving them:

• Direct access to funds on their IBANs
• Reduced dependence on card acquirers and rolling reserves
• Better control over settlement timing and reconciliation

4. Auto-Reconciliation and Merchant-Friendly UX

One of the classic objections to bank transfers is reconciliation: “Yes, SEPA is cheap, but we can’t reconcile thousands of payments manually.”

Yowpay tackles this by:

• Generating unique payment references per transaction or per customer
• Automating the matching of incoming SEPA credits to the underlying invoices/orders
• Providing real-time notifications to the merchant’s back-office or platform
• Enabling seamless integration via API or plugins

The result: merchants benefit from the cost and risk advantages of A2A payments, without inheriting the operational pain.

A2A Payments vs Card Payments vs Classic Bank Transfers

To understand Yowpay’s positioning, it’s useful to compare A2A/SEPA flows with cards and classic bank transfers.

Fees and Economics

• Cards: MDR + scheme fees + cross-border surcharges; costly for high-value transactions and “difficult” sectors.
• Classic bank transfers: cheap but manual, poor UX, reconciliation headache.
• A2A via Yowpay: low, transparent fees with automated reconciliation and modern checkout UX.

Risk and Chargebacks

• Cards: chargebacks, friendly fraud, complex dispute processes.
• A2A: push payments only; no chargebacks in the card sense; disputes handled as refunds and support cases.

Speed and Settlement

• Cards: settlement typically T+1 to T+7, often with rolling reserves.
• SEPA Instant (A2A): near-real-time crediting of merchant IBANs, 24/7.
• Yowpay: orchestration designed to maximise instant and fast SEPA flows, reducing settlement delays.

When Should a Merchant Consider A2A Payments with Yowpay?

A2A is particularly attractive if you are:

• A crypto or FX platform needing fast, low-cost EUR on-ramps and off-ramps.
• A gambling, betting or iGaming operator looking to reduce chargebacks and card scheme risk.
• A B2B or high-ticket merchant selling high-value services or equipment.
• A subscription or marketplace platform where margins are thin and chargebacks are painful.

In these cases, integrating Yowpay’s A2A / SEPA orchestration can:

• Lower your payment costs
• Accelerate settlement and cash-flow
• Reduce exposure to chargebacks and card scheme rules
• Provide flexible, multi-IBAN setups tailored to your business model

Conclusion: A2A Is the Logical Next Step – and Yowpay Is Built for It

A2A payments are not just a buzzword. They are a structural shift: away from expensive, chargeback-prone card rails and
towards direct, instant bank-to-bank transfers with modern user experience.

With SEPA Instant and Open Banking maturing, the question for European merchants is no longer “if” they should adopt A2A,
but “how” and “with which partner”. Yowpay’s SEPA-native orchestration, multi-rail strategy (manual, QR/EPC, PIS), and
focus on complex, high-value verticals make it a strong candidate for businesses that want to fully leverage the A2A
opportunity instead of treating bank transfers as a secondary, manual payment method.

If you are exploring A2A / SEPA payments for your business, Yowpay can help you move from theory to production – with
dedicated IBANs, automated reconciliation and a checkout experience that your customers will actually use.

FAQ About A2A Payments and Yowpay

Is A2A the same as Open Banking payments?

Not exactly. Open Banking (PIS) is one of the technologies used to initiate A2A payments, but A2A also includes
manual transfers, QR/EPC flows and instant payments. Yowpay combines all of these SEPA flows, not just Open Banking.

Are A2A payments safe?

Yes. A2A payments use bank-grade rails and authentication (including SCA). For merchants, the risk of chargebacks is
significantly lower than with cards. For consumers, the payment is authorised directly from their banking environment.

Can I use A2A for recurring payments?

Yes, but the setup is different from card subscriptions. A2A recurring flows are usually built with standing orders,
payment mandates or pre-authorised pulls via schemes that support them. Yowpay focuses primarily on collections and
top-ups but can be integrated into subscription or invoice-based flows.

Does Yowpay replace my card acquirer?

Not necessarily. Many merchants run both: cards for some use cases and A2A/SEPA for high-value, high-risk or cost-sensitive
flows. Over time, as customers adopt “Pay by bank”, you can rebalance volumes towards cheaper and faster A2A channels.

Which countries are supported?

Yowpay targets businesses operating in the SEPA zone and using EUR as primary currency. Depending on banking partners,
multi-IBAN setups (DE/LT/MT/UK, etc.) can be used to optimise acceptance and local presence.

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