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 as well as being a digital alternative to direct debit.
Some of the first payment service providers to offer PayTo to merchants and businesses: 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 are: BankWest, Bendigo Bank, the Commonwealth Bank of Australia, Great Southern Bank, People’s Choice Credit Union, 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, as per the press release.
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.
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