What’s behind the rise of account-to-account (A2A) payments?
What has progress looked like, and what sorts of merchants are you bringing on board?
Since our launch in 2020, we have experienced strong, increasing demand for our instant payment solutions – and we find that this is driven by the consumer preference for speed, ease and convenience, which merchants strive to fulfil.
We have found that there are sectors where the speed and security of payments is one of the biggest, or the biggest, consideration for consumers. Here we currently find the strongest adoption of our products, for merchants to respond to this need and win out over their competitors. Some of the sectors with the most concentrated demand are currently financial services (specifically lending or financial services apps), marketplace business models, insurance and the gig economy.
There’s a growing range of payment options available at checkout. How do account-to-account payments benefit consumers?
For the shopper, account-to-account payment makes the transaction process significantly more convenient, particularly on mobile. The convenience is created by the solution’s nature where all you need is a bank account and users do not need to complete cumbersome sign-up forms or downloads.
Furthermore, there is no requirement to create additional passwords, all you need is the top-of-mind information you would use to log in to your banking app. In isolation, the convenience may appear minor, however, we know that many people are shopping on lots of different platforms on a very regular basis, and the timesaving and ease becomes significant.
What about for a merchant – what’s in it for them?
Account-to-account payments have many benefits for merchants, too. Notably, the cost of payment is both lower and more predictable, particularly in comparison to card payments and the associated complicated pricing models based on card mix. Furthermore, it’s easy to integrate, and facilitates an improved cashflow, which is a crucial factor in the selection process.
Another significant advantage for merchants is how A2A payment makes their proposition more engaging for consumers in comparison to other providers. The security and convenience that this payment method ensures is a very competitive benefit in the market.
Where are you currently active, and where should we expect to see Brite Payments in future?
Our market rollout began in 2020, and we first launched Brite Payments in Sweden, Finland, and the Netherlands. We chose these markets because their populations had an existing strong preference for account-to-account payments so we were confident that consumers would easily understand our proposition and how we were differentiating from providers they may be familiar with.
Following the strong positive response, we have continued our expansion over the past two years, bringing our current market coverage to 21 in total as of August 2022, with Estonia being the most recent launch. Next on the radar for us is our upcoming launches later this year which will see us reach full coverage in the Baltics – we are really excited to develop our local connections within these countries.
What else is in store over the next 12-18 months?
We are already experiencing significant growth this year and we are conscious to ensure that the evolution of the business remains aligned to our goal, which is to prioritise user experience.
Over the next 12-18 months, one of our biggest projects will be establishing local operations in our existing markets. These local relationships provide invaluable insights into merchant and consumer feedback and help to continually shape our solutions. We are also working on product launches with specific verticals in mind which we feel are still underserved by current payment options on the market.
One of the biggest benefits we find as a second-generation fintech is being able to draw on the extensive knowledge of our talented team who typically begin their careers in some of Europe’s largest payment companies. We use this diversity in experience to identify and assess verticals that we feel could be better served with an instant payments solution.