UK-based A2A payment solution provider Token.io has launched virtual settlement accounts that enable payment providers to use A2A for ecommerce. The new offering enables payment providers to see real-time notifications of settlements while collecting and holding funds in various currencies.

As a result, end merchants will have visibility over the funds that they receive and, consequently, they will have the necessary assurance to instantly release goods and services. By extending this new product, Token.io leverages the new interest in account-to-account payments resulting from a shift from cards to alternative payment methods. According to a Juniper research cited in the official release, Open Banking powered A2A payment transactions are anticipated to exceed USD 330 billion by 2027.

What is more, this new offering comes to address a pain point in the industry. As stated in the official statement, under current regulations, European banks are not under an obligation to provide payment settlement statuses to third-party providers such as Token.io. This creates difficulties for merchants, as the third-party providers are the initiators of Open Banking-enabled payments on behalf of both payment solution providers and the merchants they serve.

In the company press release, officials from Token.io outlined that the new product is in line with Token.io’s mission to make A2A a mainstream payment method in and beyond Europe. The A2A infrastructure provider currently offers 80% coverage for A2A payments in 16 countries, thus reaching over 567 million bank accounts in Europe. Other benefits that the new offering includes Token.io will be able to leverage the new virtual accounts to provide instant refund capabilities, a feature that is said to further advance the development of A2A payments in ecommerce.

This solution is necessary as, according to studies, around 20% of the items purchased online are returned. Up until this point, refunds of Open Banking payment transactions required technical advances to be made to a payment provider’s existing treasury system or manual processing. With the introduction of virtual accounts, payment providers will now have the necessary tools to process instant refunds from their account to a consumer’s bank account.

The new process would require no manual interference or supplementary fund transfers. Token.io’s new offering also provides support for instant payouts and enables the distribution of funds in accordance with personalised frequencies. Even more so, by providing flexibility when it comes to transaction reconciliation and settlement, the new virtual accounts reportedly offer a fast time-to-market solution for payment providers.

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