What is PayTo and how does it work?
The current financial framework everyday Aussies have been using is great, but it has its flaws. As Australia and the world economy increasingly digitises, new payment methods are needed to keep up with the breakneck pace of tech evolution.
That’s where PayTo comes in. PayTo is the newest payment system on the market from the same folks behind PayID and Osko. Only established last year, PayTo promises to revolutionise the way Aussies pay for goods and services in the new digital economy.
So, what is it and how does it work?
What is PayTo?
PayTo is a new kind of payment system that is a digital alternative to direct debit. It lets you make and control payments from your bank account. This is known as account-to-account or bank payments.
PayTo was developed by the New Payments Platform (NPP) alongside the banks, fintechs, and payment service providers as a digital alternative to direct debit. The NPP is a subsidiary of the Australian Payments Plus includes organisations like BPAY group and eftpos.
How does PayTo work?
PayTo works by using “PayTo agreements” which are made between you and a merchant. You’ll then be able to approve this PayTo agreement from your internet or mobile banking apps. PayTo only requires you to have your PayID or BSB and account number to make transactions instead of a debit card.
What are the main benefits of PayTo?
There are a couple of benefits PayTo has over the current direct debit system that could interest both consumers and businesses. Some of these include:
Real-Time Payments
By leveraging the New Payments Platform, PayTo aims to make transactions near-instantaneous. This is an improvement over the existing direct debit system, which could sometimes take a day or more to settle transactions.
Rich Data Capability
PayTo aims to carry more data along with each transaction. This not only includes traditional transaction data but also additional context that can be used for accounting or compliance purposes. For businesses, this can lead to more streamlined financial operations and better tracking.
Enhanced Security
PayTo has improved identification and verification methods to reduce fraudulent activities and errors. Two-factor authentication and other modern security measures are standard, providing both businesses and consumers with increased peace of mind.
Streamlined Operations
The move to PayTo could make business processes more efficient. Businesses can cut down on manual reconciliation tasks, and the real-time nature of the system will allow for better cash flow management.
Interoperability
Being based on the New Payments Platform, PayTo will be compatible with various financial systems, enabling greater inclusivity and accessibility for businesses and consumers alike. PayTo also allows consumers to link bank accounts to other services such as apps and eCommerce activities.
How do I know if a bank uses it?
The best way to check if a bank has PayTo is to check their website. Some banks have only rolled out PayTo to certain bank accounts. For instance, ANZ access advantage and basic have PayTo integration, but ANZ Plus currently does not.
Currently some of the banks that have PayTo integrated accounts are:
- Commbank
- ANZ
- NAB
- Westpac
- Macquarie
- Bendigo Bank
- Bankwest
- Suncorp
It can be a good idea for banking customers to review their accounts to make sure that they’re getting an account that’s low on fees and facilitates their transactions easily. One way of doing this is using handy comparison tables like the one below to weigh up the pros and cons of each account.
Bank account comparisons on Mozo - last updated 28 April 2024
-
Spend Account
$0.00
Apple Pay, Google Wallet, PayID, Samsung Pay, Fitbit Pay, Garmin Pay
0% p.a.
No monthly fees and no charges for overseas or online payments from ubank. Stay one step ahead with ubank’s spending insights and bill prediction. Apple Pay and Google Pay compatible. Deposits guaranteed up to $250K per customer.
CompareCompareSpend Account
No monthly fees and no charges for overseas or online payments from ubank. Stay one step ahead with ubank’s spending insights and bill prediction. Apple Pay and Google Pay compatible. Deposits guaranteed up to $250K per customer.
- account fee
- $0.00
- Payment Options
- Apple Pay, Google Wallet, PayID, Samsung Pay, Fitbit Pay, Garmin Pay
- interest rate
- 0% p.a.
- ATM networks
- none
- What kind of card?
- Visa Debit
- Interest rate
- Balances from $0: 0.00% p.a.
- Fee free transactions
- Unlimited eftpos, debit, ATM, and banking app transactions using internet banking or the ubank iOS or Android app.
Read our Mozo Review to learn more about the ubank Spend Account
-
Everyday Options
$0.00
Apple Pay, Google Wallet, PayID
0.01% p.a.
An easy, everyday banking account packed with flexible options to help you spend, budget & save better. $0 monthly account keeping fees & option to add up to 9 sub-accounts.
CompareCompareEveryday Options
An easy, everyday banking account packed with flexible options to help you spend, budget & save better. $0 monthly account keeping fees & option to add up to 9 sub-accounts.
- account fee
- $0.00
- Payment Options
- Apple Pay, Google Wallet, PayID
- interest rate
- 0.01% p.a.
- ATM networks
- Suncorp
- What kind of card?
- Visa Debit
- Interest rate
- Balances from $0: 0.00% p.a.
Balances from $1: 0.01% p.a.
- Fee free transactions
- Unlimited free transactions from own-bank ATM, atmx ATM, Big 4 banks ATM, EFTPOS, counter withdrawals, counter deposits, phone and internet
Read our Mozo Review to learn more about the Suncorp Everyday Options
-
Everyday Global Account
$0.00
Apple Pay, Google Wallet
0% p.a.
No overseas ATM fees & up to 10 currencies in one account. Switch between currencies instantly 24/7 wherever you are using the mobile app. Receive 2% Cashback on eligible tap and pay transactions under $100. Mozo's Experts Choice 2023 winner for Exceptional Everyday Account.^
CompareCompareEveryday Global Account
No overseas ATM fees & up to 10 currencies in one account. Switch between currencies instantly 24/7 wherever you are using the mobile app. Receive 2% Cashback on eligible tap and pay transactions under $100. Mozo's Experts Choice 2023 winner for Exceptional Everyday Account.^
- account fee
- $0.00
- Payment Options
- Apple Pay, Google Wallet
- interest rate
- 0% p.a.
- ATM networks
- HSBC
- What kind of card?
- Visa Debit
- Interest rate
- Balances from $0: 0.00% p.a.
- Fee free transactions
- Unlimited free transactions from HSBC ATMs, EFTPOS, phone, internet, BPAY and direct debits
Read our Mozo Review to learn more about the HSBC Everyday Global Account
-
Glide Account
$0.00
Apple Pay, Google Wallet, PayID, Samsung Pay, FitBit Pay, Garmin
0% p.a.
Unlimited free internet transactions. Super fast transfers & use Apple Pay, Google Pay and Samsung Pay. No account keeping fees. Access Any Major Bank & MyState Bank ATM Fee-Free.
CompareCompareGlide Account
Unlimited free internet transactions. Super fast transfers & use Apple Pay, Google Pay and Samsung Pay. No account keeping fees. Access Any Major Bank & MyState Bank ATM Fee-Free.
- account fee
- $0.00
- Payment Options
- Apple Pay, Google Wallet, PayID, Samsung Pay, FitBit Pay, Garmin
- interest rate
- 0% p.a.
- ATM networks
- MyState
- What kind of card?
- Visa Debit
- Interest rate
- Balances from $0: 0.00% p.a.
- Fee free transactions
- Unlimited free internet transactions.
Read our Mozo Review to learn more about the MyState Bank Glide Account
Your selected bank accounts
Your selected bank accounts
Your selected bank accounts
Your selected bank accounts