What is PayTo?

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PayTo is a modernised way of allowing third parties to deduct money from customers' account (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 mandate. This mandate can be managed within the customer's banking app.

Below is the process flow on how PayTo works:

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PayTo Process Flow Diagram

Benefits of PayTo

  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. Enhanced security
    A customer must authorise the mandate from within their banking app, this means there is significantly less chance of any fraudulent activity. This could also mean that there might be a decrease in chargebacks for merchants as customers will need to provide a clear mandate (approval) for payments to be debited.

  3. Customer Self Service
    Customers have the ability to move their mandate 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 mandates 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.

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


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