Iceland prepares for domestic account-to-account payments infrastructure

Iceland is launching a new domestic payment infrastructure focused on account-to-account (A2A) payments. This system allows consumers to pay for goods and services directly from their bank accounts, bypassing traditional credit card networks like Visa or Mastercard. For retailers and operators, this signals a global shift toward lowering the cost of accepting payments. A2A systems generally offer lower transaction fees compared to credit cards and provide immediate settlement of funds. While this specific update is based in Iceland, it represents a growing trend in the financing and payment industry toward 'Open Banking.' By creating a direct link between the merchant and the customer's bank, businesses can offer more seamless checkout experiences. For operators who offer financing, these infrastructures often serve as the backbone for newer Buy Now, Pay Later (BNPL) integrations and instant loan disbursements. Strengthening this infrastructure makes it easier for domestic lenders to offer competitive financing products at the point of sale without relying on international card rails.

Source: Finextra — Lending

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