Mastercard introduces A2A Protect service in the United Kingdom
Mastercard Launches A2A Protect to Strengthen Account-to-Account Payments Security
Mastercard has unveiled a new global service, Mastercard A2A Protect, designed to bolster the security of account-to-account (A2A) payments. The service, which is currently being implemented by several UK banks, aims to provide consumers with enhanced protection and streamlined fund recovery processes.
The service works by combining advanced fraud prevention, consumer protection standards, and a streamlined fund recovery process. It enhances Mastercard's Consumer Fraud Risk (CFR) transaction scoring to identify more high-risk transactions, uses AI-driven tools like Mastercard Trace to detect money laundering and mule accounts, and implements an industry-wide standardized fraud and loss reporting mechanism.
For consumer protection, A2A Protect offers banks a simple, comprehensive framework with multilateral standards aimed at addressing transactional fraud and protecting consumers against goods and services fraud where relevant. This framework helps ensure best practices are followed to protect users during A2A transactions.
On the recovery side, Mastercard introduces a uniform, centralized dispute resolution procedure via its existing platform, which allows banks to resolve disputes and recover funds more efficiently across multiple use cases. This process reduces operational costs, speeds up resolutions, and delivers more predictable outcomes for all parties involved.
Initially launched in the UK, the service is designed as an overlay compatible with any existing A2A transaction system. It targets urgent challenges like Authorised Push Payment (APP) fraud, but plans are in place to broaden coverage of recovery processes to other scenarios involving goods and services payments in future phases.
Several UK banks, including Monzo, NatWest, and Santander, are already working with Mastercard to implement A2A Protect. Monzo is collaborating with Mastercard to build a tool that gives banks access to industry-wide data to help them spot suspicious transactions. Santander sees Mastercard A2A Protect as a promising addition to the evolving landscape of A2A payment utility and security.
Since its introduction in 2023, CFR has played a key role in reducing the number of APP fraud cases in 2024 by 20%. The Payment Systems Regulator (PSR) in the UK has also introduced a 50:50 liability model for APP fraud, further emphasizing the need for robust security measures in A2A payments.
In the UK, £592 million was lost to account-to-account fraud in the previous year, as reported by UK Finance. Mastercard A2A Protect is part of the UK government's National Payments Vision for modernizing account-to-account payments. The service is not limited to the UK, however, as it is a global solution aimed at addressing the growing challenges of A2A fraud and ensuring secure, efficient, and consumer-friendly payments.
For further reading, Mastercard has recently unveiled an A2A payments sandbox in the UK.
[1] Mastercard (2023). Mastercard A2A Protect: Enhancing Account-to-Account Payments Security. Mastercard Newsroom. [Online]. Available: https://newsroom.mastercard.com/mastercard-a2a-protect-enhancing-account-to-account-payments-security/
[2] UK Finance (2024). Account-to-account fraud losses reach £592 million in 2023. UK Finance Press Release. [Online]. Available: https://www.ukfinance.org.uk/news/account-to-account-fraud-losses-reach-592-million-in-2023/
[3] Payment Systems Regulator (2024). A50:50 Liability Model for APP Fraud. Payment Systems Regulator. [Online]. Available: https://www.psr.org.uk/policy-and-regulation/our-work/account-to-account-payments/a5050-liability-model-for-app-fraud
[4] HM Treasury (2023). National Payments Vision. HM Treasury. [Online]. Available: https://www.gov.uk/government/publications/national-payments-vision
[5] Mastercard (2024). Mastercard A2A Protect: A New Era for Account-to-Account Payments. Mastercard Newsroom. [Online]. Available: https://newsroom.mastercard.com/mastercard-a2a-protect-a-new-era-for-account-to-account-payments/
- Mastercard's newly launched global service, A2A Protect, focuses on technology to improve security in account-to-account (A2A) payments by collaborating with several UK banks.
- A2A Protect, with its advanced fraud prevention and consumer protection standards, aims to provide a secure platform for A2A transactions, strengthening the global payments industry.
- The service offers banks insights into industry-wide data, helping them identify suspicious transactions through collaboration with Mastercard and other partners.
- With Mastercard A2A Protect, banks benefit from a simple and comprehensive framework that facilitates effective collaboration and adherence to multilateral standards for fraud prevention.
- By implementing A2A Protect, UK banks like Monzo and Santander seek to innovate their account-to-account payments systems, addressing urgent challenges and enhancing security.
- The UK government's National Payments Vision includes Mastercard A2A Protect as a key component in its drive to modernize account-to-account payments, looking to reduce losses from fraud and promote business growth.
- Mastercard's initiative has garnered attention from the finance sector, with the service aiming to become a global solution to tackling the growing challenges of A2A fraud, promoting secure, efficient, and consumer-friendly payments worldwide.
