PayTo is an initiative from the New Payments Platform (NPP); fast payments infrastructure built by the Australian financial services sector.

PayTo works similarly to direct debit, with payments initiated by a business, drawing funds from the customer’s bank account.

PayTo removes the need for paper payment authorisations, using in-app payment mandates from the customer’s banking app to accept the payment mandate. Once accepted, customers can manage the payment mandate from within their banking app, including viewing records of accepted mandates and updating the chosen bank account to draw down on.

PayTo Agreements replace paper authorisation forms that are used for bank direct debit payments. When using PayTo, customers will receive a notification from their banking app prompting them to log into their app and accept the Agreement.

Agreements include information about the payment plan, including who the biller is and the recurring payment amount, with this information being stored in the customer's banking app for future reference.

Yes, customers have the ability to decline or cancel a PayTo mandate.

Your business will be notified immediately so that you can contact the customer and rectify the issue.

Before billing can start or resume, a new mandate must be sent for the customer to accept.

PayTo is the latest innovation in payments technology in Australia, with significant benefits for both businesses and their customers.

Benefits for businesses include:
- Real-time customer and funds verification
- Improved customer self service
- Payment processing 24/7

Benefits for customers include:
- Enhanced security and fraud prevention
- Simple, paperless sign-up process
- Manage PayTo through banking app

Yes, but not immediately.

PayTo is being developed as a replacement for the current bank-to-bank direct debit platform BECS (Bulk Electronic Clearing System). Whilst the rollout of PayTo continues, customers will be able to use both the existing BECS platform and PayTo.

Once PayTo becomes the norm for bank-to-bank payments, the existing platform will be switched off.

PayTo will roll out progressively from mid-2022. As PayTo is brand new in Australia, it will take some time to become available for all software platforms.

We are currently working with our software partners to integrate PayTo into their existing platforms.

Your software provider will let you know once it is available and how you can start using PayTo.

Click here if you'd like to register your interest for PayTo!

No, your existing software provider and Ezypay will do all the hardwork to get your business PayTo ready.

Once ready, you will need to communicate PayTo to your customers, but Ezypay and our software partners can help with that.

For customers, changing their payment method will be as simple from changing their regular payments from one bank account to another.

No, there are no end dates for PayTo agreements. Your payment plan will continue to bill using PayTo until you cancel the payment plan, or the customer cancels the payment authorisation from their banking app.

If a customer's payment plan has a total amount to collect (TAC), the PayTo payments will continue until the TAC has been collected.

PayTo is just another payment method, so PayTo failed payments will be handled like any other payment method.

You can view your failed payment handling conditions from within the Ezypay platform, or from within our software partner's platform if you are using an integrated solution.

Payment plans can't commence without a customers authorisation through the payment mandate. If one of your customers fails to respond to the PayTo notification, it's best that you contact them to remind them of their next steps.

PayTo will provide updates when a payment mandate has been approved or declined, so keep an eye out for these updates if you are unsure.

PayTo and direct debit payments act in a similar way, as both are forms of bank-to-bank payments. Customers will provide their BSB and account number, or their PayID number in order for a business to bill them. The main diffence between PayTo and bank direct debits is the in the account authentication and the payment processing times.

PayTo Agreements

Before a customer can be charged, they must accept a PayTo agreement. After entering their payment details, the customer will receive a notification from their banking app, asking them to accept their PayTo Agreement. This adds an extra layer of protection against fraudulent transactions for both businesses and customers

Processing time

PayTo payments are processed in real-time, significantly quicker than traditional bank direct debits. Businesses using PayTo will receive a near instant payment response, giving them greater confidence when billing customers.