Community

A2A payment has been a success in India thanks to UPI and now it seems to be the standard and many US firm are adopting this in India. The reason is two fold - this method of payment from your Bank account is well tuned into customer's behavior in these markets. Secondly the transaction cost is 40 basis points as opposed to 1.8 per cent or higher for a card scheme.

Now this behavior is catching up in UK and other markets since the transaction cost is much lower. So although customers are used to swiping their credit card, merchant acquirers will push such an alternative payment method becasue it lowers the cost for the merchant.