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Ready for real time bank payments? Everything to know about PayTo

  • April 26, 2022   ⎯   mins read

PayTo, a component of the New Payments Platform (NPP), is set to revolutionise the way that Australians make payments. Traditionally, subscription and recurring payments in Australia are made by either Direct Debit (from a Bank Account) or Credit/Debit cards, with the two options being either too slow or too complex. PayTo will allow both consumers and businesses the ability to reliably transfer money in real time and receive instant response messages. While its initial launch is still several months away, it’s important for businesses operating in Australia to understand what PayTo is and how it will benefit them.

What is PayTo and how does it work?

PayTo is a modernised way of allowing third parties to deduct money from your account (similar to direct debit) and is a component of the New Payment Platform (NPP). The NPP, created in 2018, already facilitates services such as Osko and PayID to enable fast `push` payments, initiated by the account holder.

PayTo focusses on ‘pull’ payments, which are payments initiated by a third party. While using PayTo as a payment method, the account holder must give you (the third party) consent to bill them from within their banking app, known as an agreement. Once the PayTo agreement is approved, you will have the ability to bill the customer in real time, with near instant payment responses.



What are the benefits of PayTo for SMEs?

PayTo brings with it a number of benefits for subscription model businesses. PayTo will fundamentally support Ezypay`s primary goal; to effectively and efficiently improve the collection of payments from your customers. Here`s how...

Faster Processing Times


Traditional direct debits suffers from a 2-3 working day response time, meaning it could be up to three days before you realise that a customer payment has failed. With PayTo through Ezypay, payment responses will be immediate, so there’s no waiting around to find out if the transaction has been successful or not.

Payment Agreements


Payment agreements offer both positives and some complexity for SMEs. As your customers must authorise the agreement from within their banking app, there is significantly less chance of any fraudulent activity. Disputes should also decrease, as payment agreements provide almost irrefutable evidence that the consumer has agreed to be billed. Should the customer decline the agreement however, then you will receive real time notifications, giving you time to rectify the issue.

Customer Self Service


Similarly, customers have the ability to move their agreement from one bank account to another with great ease. If they close their account or change their mind about which account they want to use, they can transfer all their agreement to the new account. This can all be done without the need to contact your business and ensures that the correct account is billed each time.

PayTo will fundamentally support Ezypay's primary goal; to effectively and efficiently improve the collection of payments from your customers.

With benefits for both businesses and consumers, PayTo is set to revolutionise the way that payments are processed in Australia. While there is a lot of work that still needs to be done to ensure all its benefits are available to you, it’s important to prepare your business so that you can offer PayTo to customers when it’s ready later this year.

We’ll keep you up to date with everything you need to know about PayTo, such as when it’s launching and how it impacts your business. As a payments leader, Ezypay will be one of the very first providers to offer PayTo to businesses in Australia.

As a payments leader, Ezypay will be one of the very first providers to offer PayTo to businesses in Australia.


If you are interested in setting up an Ezypay account to offer PayTo to your customers, you can apply here, or reach out to our team by calling 1300 300 553 in Australia, or by emailing hello@ezypay.com.

Ezypay News PayTo

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