What is PayTo?


PayTo is a modernised way of allowing third parties to deduct money from customers' accounts (similar to direct debit) and is a component of the New Payment Platform (NPP). What this means is that merchants will have the ability to bill their customers' bank accounts in real time, with near instant payment responses, rather than waiting up to 3 working days.
In order to bill a customer using PayTo, the customer (account holder) must give authority first by authorising a PayTo agreement. This PayTo agreement can be managed within the customer's banking app.

Below is the process flow on how PayTo works:


PayTo Process Flow Diagram


PayTo is available in Australia only.

Benefits of PayTo

PayTo is the latest innovation in payments in Australia and offers several benefits to businesses processing recurring payments:

1. Faster Processing Time
Traditional direct debits take up to three working days before a response is received, meaning it could be up to three days before a merchant is notified that a customer's payment had failed. With PayTo, payment responses will be immediate.

2. Improve Cashflow Certainty
PayTo is designed to maximise collection rates and improve cashflow by processing payments in real-time and providing real-time funds verification.
Real-time payment status provide near immediate notification of failed payments, allowing for prompt follow up with your customers, improving the chances of collecting the owed amount before it can impact your cashflow.

3. Enhanced Security
With PayTo’s enhanced account validation, customers provide digital approval of their payments through mandate, this means there is significantly less chance of any fraudulent activity, it can reduce the chance of dishonours and providing near irrefutable evidence of customer approval to debit, resulting in fewer chargebacks.

4. Allowing Customers to Self Service
Customers have the ability to move their PayTo 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 PayTo agreements to the new account. This can all be done without the need to contact the Merchant or Ezypay and ensures that the correct account is billed each time.


Not all banking institutions support PayTo. During the customer sign up process, Ezypay will provide a notification that the customer's banking institution selected does not support PayTo, and they will need to select a different payment method.