Open banking eliminates many of A2A payments’ pain points, making them an even more attractive option for merchants.

Moneyhub’s and Tink’s partnerships spotlight the growing demand for A2A payments ahead of planned card fee hikes.

With the growth of account-to-account (A2A) payments, this is a well-timed move for Stripe. A2A payments have lower fees than card payments, which can improve Stripe’s profit margins. The industry megaplayer will likely embed other financial services as it builds a one-stop shop for customers looking for a seamless service for all their payment needs.

Visa and Mastercard will have to contend with the rise of alternative payment methods like buy now, pay later (BNPL) and A2A payments. Growing dissatisfaction over card fees could help these alternatives gain more market share.

Merchants might embrace alternatives to card payments, like account-to-account (A2A) offerings. Discover and Bank of America exploring these payments could signal that they expect a medium-term sea change, especially with the launch of FedNow on the horizon.

Visa, Mastercard, and American Express will have to compete with the rise of alternative payment methods like buy now, pay later (BNPL) and account-to-account (A2A) payments that leverage open banking. Two major issuers entered the A2A market this week, and others may follow—including domestic schemes. Swipe fees will remain a point of tension between merchants and card networks.

The news: Klarna expanded its partnership with account-to-account (A2A) payments provider GoCardless so its US users can make payments from their bank account, per a press release. The A2A solution is available for Pay in 4 and Klarna financing, the provider’s long-term credit option.