The buzz surrounding 'A2A payments' has increased, catching the attention of banks and payment processors. In 2022, A2A accounted for nine percent of global e-commerce payment transactions, surpassing buy now, pay later (BNPL) figures. This significant statistic highlights A2A's prominence, perhaps owing to its longer-standing presence in the market. But what exactly do these transactions entail, and more importantly, how could they benefit your business? To demystify this financial jargon and provide clarity, our team of money movement experts at has curated this comprehensive guide.

We’ll cover:

What are A2A payments?

Account-to-Account (A2A) payments are, as the name suggests, electronic money transfers from one bank account into another without delays from intermediary sources

Key Characteristics of A2A Payment Processing

Direct transfers between bank accounts

  • A2A payments typically do not involve credit or debit cards. Instead, they are sent directly between bank accounts using account information.

Electronic money movement

  • A2A payments are always digital, unlike cash or paper checks.

Use Cases

To better understand the A2A meaning or electronic transfers between bank accounts, it is important to consider the various types of A2A payments and their associated use cases.

A2A transfers offer a range of use cases including P2P, C2B, B2B, B2C, and Me-to-Me transactions, providing individuals and businesses with a convenient, secure, and cost-effective way to move money between bank accounts.

Peer-to-Peer (P2P)

  • A2A payments can be used to send money directly from one individual’s bank account to another individual’s bank account, without the need for cash or physical checks. For example, friends or family members can use A2A payments to split the cost of a dinner bill, pay rent or utilities, or reimburse each other for shared expenses.

Consumer-to-Business (C2B)

  • A2A payments can be used by individual consumers to make payments directly to businesses. For example, a customer might use A2A to pay a utility bill, a subscription service, or to purchase goods or services from an online retailer.

Business-to-Consumer (B2C)

  • A2A payments can also be used by businesses to make payments directly to individual customers or clients. For example, a company might use A2A payments to issue payroll or vendor payments, to send refunds to customers, or to pay out insurance claims.

Business-to-Business (B2B)

  • A2A payments can also be used for transactions between businesses. For example, a supplier might use A2A payments to receive payment from a customer for goods or services rendered, or a company might use A2A payments to pay a contractor for work completed. By using A2A payments, businesses can reduce transaction costs and processing times, as well as improve security and transparency in financial transactions.


  • A2A payments can also be used by individuals or businesses to move money between their bank accounts at different financial institutions. For example, an individual might use A2A payments to move money from their checking account to their savings account at a different bank, or a business might use A2A payments to consolidate funds from multiple bank accounts for accounting purposes.

In this guide, we will be using the term “A2A” or “A2A transfer” to refer to any electronic movement of money between the bank accounts of different individuals or entities (P2P, C2B, B2C, or B2B).


Account-to-account (A2A) payment types

Since the term A2A payments encompasses quite a broad range of transactions, there are multiple possible methods of moving money that we should cover.

Let’s take a look at the common payment types available in the US today.

Push payments vs. pull payments

First, transactions can be classified as either “push payments” or “pull payments”, independent of what payment method is being used to move that money:

Push payments (credit)

Pull payments (debit)

  • The receiver initiates the transfer with the sender’s prior authorization, pulling money out of the sender’s account

ACH payments

The Automated Clearing House (ACH) network is one of the most popular methods of moving money in the US. 

All ACH transfers are fully electronic. This payment rail is available for every single bank account in the country. Additionally, ACH is typically one of the cheapest payment options.

The ACH network supports both push and pull payments, as well as three different payment speeds:

  • Standard ACH (3-5 business days)
  • Next Day ACH (1 business day) 
  • Same Day ACH (<1 business day)

To learn more about what is an ACH payment and the differences between the available options, you can read our dedicated guide. 

Real-Time Payments 

The Real-Time Payments (RTP) network is one of the newest payment rails in the country.

Unlike other rails, RTP can clear and settle transactions nearly instantly (typically within seconds or minutes).

Because money becomes available to the receiving party right away, all transactions are final and irreversible.

All payments sent via the RTP network also store a variety of data useful for reconciliation and bookkeeping.


How do merchants and consumers benefit from A2A  payment rails?

You can’t avoid having to move money to other parties, whether they are businesses or individuals. So, whenever your business has to decide how you’re going to move money, you should consider using A2A payments instead of cards, cash, or checks.

Below are some key benefits that you may wish to consider when deciding whether to implement one of the A2A payment rails for your transactions.

Benefits for merchants

As a merchant, you could experience the following advantages from A2A transfers and payments:

Reach More Clients

  • Online payments have become an essential part of our lives ever since the pandemic and the rapid rise of remote work. If you want to expand your market share beyond your local market or physical store, you should be accepting A2A payments.

Increase Conversion Rates

  • Most modern implementations of A2A payment rails are extremely convenient. Your customers can easily pay from whatever device they have on hand without worrying about walking anywhere or buying stamps. By improving user experience, you may see more customers completing their checkout.

Keep Transaction Costs Low

  • Card networks charge you a percentage value of each completed transaction. Especially with credit cards, those fees can easily eat into your revenue stream. By accepting bank payments, you can decrease transaction costs and lower operating expenses.

Instant Settlements

  • Most modern A2A payment rails are quite fast. Networks like RTP will make your money available instantly, while Same Day ACH still arrives within the same working day. With faster processing time, you can regain control over your cash flow without resorting to cash.

Benefits for consumers

By allowing consumers to pay you or accept money via A2A payments, you are helping them experience the following benefits:

Enhanced User Experience

  • Consumers can easily send money from their web browser or mobile app on whatever devices they prefer. In addition, you can let them link their bank account with your application, so they will never have to remember and manually type out their card or bank account details when sending money.

High Level of Security

  • Most A2A payments require some type of multifactor authentication (MFA) whether as a one-time passcode on their phone number or by using biometric confirmation such as Face and Touch ID. Thanks to these security measures, payment fraud is a lot less likely and consumers can move money without worrying about it being lost or stolen.

Are A2A payments safe?

While A2A payments are not immune to fraud and abuse, they are a lot safer than other ways of moving money.

A2A payments are significantly more safe than paper checks. The AFP 2022 Payments Fraud Report found that 66% of organizations were affected by check fraud, while only 37% dealt with ACH debit fraud. Even better, only 5% of respondents were targeted through more modern A2A payment rails (Same-Day ACH, RTP).

In addition, A2A payments are a lot more safe for consumers than card payments. More than 35% of consumers who fell victim to payment fraud in 2022 had their money stolen through credit or debit cards, according to the Federal Trade Commission (FTC)


The future of A2A payments and processing

So, where are we expecting A2A transfers and payments to go soon? 

First, The 2023 Global Payments Report anticipates a 13% growth in A2A payments through 2026, potentially driving the global e-commerce market to nearly $850 billion. Additionally, the United States Federal Reserve has begun to rollout the FedNow service, making instant money transfers accessible to many more organizations and financial institutions.

We are also expecting to see real-time payments to catch on with many more businesses and consumers across the US. Federal Reserve consumer research found that 70% of consumers want faster payment access, so organizations around the country will be adopting new payment rails to meet these customer expectations. 


Explore A2A payment processing with

If you want to enable A2A payments for your organization, you can either contract with a bank or integrate with a payments API provider like Orum.

With Orum’s payment API, you can:

  • Customize payment flows
  • Control transaction speed and delivery
  • Avoid costly fees
  • Speed up integration time
  • Incorporate the best payment rail for each of your use cases.

If you’re interested, learn more by scheduling a call with our team.

Ready to move?Let’s talk.