Australia’s first payment service providers have commenced offering PayTo to their merchant and business customers, as the financial services sector prepares to use PayTo to vastly improve account-to-account payments. 

Developed by NPP Australia in collaboration with financial institutions, fintechs and payment service providers, it’s anticipated PayTo will appear as a payment option for online, in-app and recurring payments in coming months as well as being a modern digital alternative to direct debit. 

Katrina Stuart, Managing Director of NPP Australia, confirmed that the first payment service providers to offer PayTo to merchants and businesses in coming months include: Azupay, Ezypay, Monoova, Paypa Plane and Zai who are all sponsored by NPP participant CUSCAL, and Zepto who will offer PayTo services as an NPP Connected Institution. 

The first financial institutions to enable payer customer accounts in coming months are: BankWest, Bendigo Bank, the Commonwealth Bank of Australia, Great Southern Bank, People’s Choice Credit Union (PCCU), RACQ, and the Reserve Bank of Australia’s Banking department. It is expected that most remaining customers will have PayTo enabled on their accounts by April 2023.  

“We are thrilled to see Australia’s first payments innovators start to offer PayTo, which we believe will revolutionise the way bank accounts are used for payments,” Ms Stuart said. 

“For businesses with a retail focus, large billers like utilities and government departments, PayTo will enable them to receive fast and secure payments from their customers’ bank accounts, as an alternative to cards or online payment options from international players.  

“PayTo removes uncertainty from the payment process and takes out inefficiencies such as dishonours and disputes, as well as greatly reducing the risk of fraud. 

“For consumers, PayTo brings much better visibility and control over their payment arrangements, providing a far superior digital experience compared to the now outdated direct debit system. 

“Businesses and corporates will also be able to use PayTo to authorise a third party to facilitate real-time payments on their behalf, such as payroll and accounts payable,” said Ms Stuart. 

PayTo works by enabling a merchant or business to establish a ‘PayTo Agreement’ with a customer, outlining how much, and when, the customer agrees to pay for goods and services.   

Customers authorise a PayTo Agreement in their internet or mobile banking, making it a secure option for the customer. Merchants and businesses get the benefit of upfront validation that the customer’s account details are correct at the time a PayTo Agreement is authorised. These agreements are then stored within a customer’s internet banking or mobile banking app where they can be viewed and managed. 

When a payment is initiated, PayTo checks upfront for adequate funds in the paying customer’s account, reducing rejected payments and manual exception handling.   

Ms Stuart said that both the development and roll-out of PayTo was a complex process involving significant industry collaboration across participating financial institutions, fintechs and payment service providers. 

“Seeing innovators use the NPP’s real-time capabilities, to bring to life enhanced digital payment experiences and efficiencies of a truly digital economy, is exactly why the NPP was built and launched by the industry,” she said. 

“PayTo has been a multi-year programme of work requiring significant change to existing back-office processes, technical systems and customer facing digital channels. It’s important to acknowledge the effort of so many people across our industry who have worked hard to make PayTo a reality.” 

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Media contact: 

Lisa Lintern, AP+ Communications 


About NPP Australia 

PayTo is a new service operating on the New Payments Platform (NPP), national payments infrastructure that supports real-time data-rich payments for the Australian digital economy. 

NPP Australia is a wholly owned subsidiary of Australian Payments Plus and is responsible for maintaining and developing the NPP to ensure it evolves to meet the future needs of Australia’s payments and financial services sectors.  

NPP Australia’s approach to enabling access to the NPP is focused on encouraging competition, while ensuring the international standards and safeguards required for the movement of payments in real-time.  

About Australian Payments Plus  

Australian Payments Plus (AP+) was formed to deliver benefits to Australian consumers and businesses by creating a stronger, more efficient domestic payments organisation with a particular focus on payments innovation.  

AP+ brings together Australia’s three domestic payment organisations, BPAY Group, eftpos and NPP Australia into one entity. Operating in the public interest, AP+ focuses on meeting the needs of all payment users and representing the views of a diverse range of stakeholders.