Account-to-account (A2A) payments: how to move money between your accounts

Have more than one bank account? Like many people in the UK, you’re likely to have a current account and a savings account, and then there are joint accounts and international accounts.

If you have any of the above, you’ll need an easy way to move money between your accounts.

In this handy guide, we’ll show you how to make account-to-account transfers, also known as A2A payments. We’ll look at how these payments work through something known as Open Banking, how long they take, and the benefits of using this kind of payment.

So let’s dive right in.

What is an account-to-account (A2A) payment?

Account-to-account transfers are direct bank transfers. They are made electronically, and bypass the need for intermediaries or complicated payment systems like card networks. The money moves directly from one account to another.

A2A transfers have been around for a while now, in the form of standing orders and Direct Debits. But in recent years, they’ve become available for all kinds of digital payments - not just bank transfers.

And with technology such as Open Banking becoming widely used by banks and money apps, they’ve become even more seamless and convenient.

Open Banking uses something called application programming interfaces (APIs) to allow two pieces of software to communicate, which means that banks can be directly connected to a money app. This can facilitate the instant transfer of money between the two.

Example of an account-to-account payment

Let’s imagine you want to send money from your current account to a savings account held with a money app.

You can send a bank transfer from your mobile banking app (or online banking). Or you can open your savings account app and initiate the transfer there through Open Banking.

This adds a linked bank account to your app, so you can select it for future transfers. There’s no need to type in bank details or do anything else, as Open Banking APIs allow your bank and the money app to communicate and initiate the transfer.

Other examples of A2A payments include:

• Paying a business for goods or services
• Sending money to a friend or family member
• Making recurring payments, such as a monthly magazine subscription or gym membership
• Topping up ISA or investment accounts.

How long do A2A transfers take?

A2A payments are usually instant, which is the main reason they are so popular. But depending on the method used, they can take a few minutes or hours to arrive.

What is the difference between A2A and P2P payments?

A2A and P2P (peer-to-peer) payments are very similar, especially now that A2A transfers have started to include a wider range of digital payments.

P2P transfers tend to involve a range of digital payment methods, including mobile money, PayPal, digital wallets and cards.

A2A payments used to refer to just direct bank transfers. But as we’ve looked at here, it’s now used as a method for conveniently transferring money between banks and money apps.

People are also starting to use A2A for things they’d traditionally use P2P for, such as splitting the bill with friends, paying the babysitter and sending a money gift to a family member.

Are there any benefits to A2A transfers?

There are lots of benefits to account-to-account transfers, including:

• Instant transfers between accounts
• Easy to set up and use - you can often send a payment in just a couple of taps or clicks
• Companies offering A2A payments via Open Banking need to be approved by the Financial Conduct Authority (FCA)
• Option to have all of your accounts in one place (depending on which app or service you use) - all linked together via Open Banking
• Ideal for people who prefer to bank and manage money on the move via their smartphone.

💡How instant transfers work with Wise

How to move money between your accounts

The way to move money between accounts using A2A payments may vary slightly depending on which app or service you’re using.

But generally speaking, here are the steps involved:

• Open your mobile banking or money app
• Add a linked account - this is the account you want to send money to
• Give your permission for your information and account details to be shared via Open Banking - you might be taken to a third party site to do this.
• Set up the transfer, tapping in the amount you want to send
• When prompted, check the details of the payment and confirm.
• You may be asked for your biometrics (face or fingerprint login) or PIN for your linked account - this is an important security step.

💡How to send money between accounts with Wise

Move money internationally between your accounts

In this guide, we’ve looked at how account-to-account payments work and how to set up your first transfer. We’ve also covered how long they take and the main benefits on offer.

But if you plan to send money outside the UK, you might want to explore alternative solutions. A2A payments via Open Banking are often only available in the UK, where providers are authorised by the Financial Conduct Authority (FCA).

The good news is that there is a fast, secure and convenient way to send money worldwide, without the high fees that banks often charge for international transfers.

Open a Wise account online and you can make global payments in just a few taps, and all for low, transparent fees*. You can also hold 40+ currencies at once, and convert between them when you need to. You can even set up rate alerts to make the most of the exchange rate.

Open a Wise account now 🌍

What’s more, you’re guaranteed mid-market exchange rates when converting currency. This means no expensive mark-up or margin eating into your money. And you can do it all from the handy Wise app.

So if you need to move money to accounts (or from accounts) in other countries, send money to family abroad or buy from an international company - it’s quick, safe and affordable to do it with Wise.

Sources used: n/a