Available across over 29 million bank accounts across 40 banks, PayTo has been considered by the payments industry a ‘game-changer’, as it features transactions that are increasingly fast and secure, with the A2A payment method having been designed to replace the traditional Direct Debit network in Australia in an approximate of three to five years.
PayTo enables merchants and businesses alike to initiate instant, verified payments from their customer’s bank accounts, with the customer being given full control and visibility over billing by authorising payments either from within their banking app or their online account. Following the authorisation, the customers will have the ability to see any agreement within their banking app, with the platform being thought to have the potential to significantly reduce hidden fees, merchant costs, fraud, and failed payments.
As per information provided in the press release, although some Australia-based financial services are ‘PayTo ready’, GoCardless is the first to go live with the payment infrastructure and it offers the payment network alongside its Direct Debit solution. Having implemented this, GoCardless is now enabled to offer an additional range of functionalities of the likes of refunds and international payments, amongst other, all with the option to sit side by side with traditional Direct Debit.
As of now, merchants have the option of signing up to GoCardless and to make PayTo immediately available as an option within their payments’ tech stack.
The company is excited about going live with what is considered ‘the future of payments’, with GoCardless officials stating that the announcement marks a significant milestone for the company, as they have been PayTo advocates since its design and inception. Following the 2022 launch of the PayTo Uni course, which aimed to educate on what PayTo is, why it exists and the benefits of this technology, the current PayTo implementation is set to help merchants in Australia and around the world to make the payment network easily available.
As the conventional Direct Debit system is set to be replaced by PayTo in the years to come, Australia-based businesses have been urged to educate themselves on PayTo and to have it integrated within their payments infrastructure early. By doing this, businesses will be enabled to have competitive advantages gained and to reap the platform’s clear benefits, in comparison with already existing payment platforms in Australia.
GoCardless has issued a ‘State of Pay’ report which highlights that 51% of businesses wish to have their credit card processed payments reduced. Furthermore, 52% of consumers have stated that they would make use of a new payment technology, provided that it would be more secure than the one they currently use.
Having this knowledge at its basis, the company believes that the subsequent industry-wide adoption of PayTo will enable a multitude of businesses to have their approach and payment systems adjusted so that it would benefit both themselves and their customers. Furthermore, as per information offered in the press release, GoCardless officials believe that in the months following the New Payments Platform’s (NPP) deadline for PayTo integration, significant industry-wide improvements are set to come.
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