Mozo guides

What is PayTo and how does it work?

PayTo payment system

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.


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 18 April 2024

Search promoted bank accounts below or do a full Mozo database search. Advertiser disclosure
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Cameron Thomson
Cameron Thomson
Money writer

Cameron has a Bachelor of Creative Writing and History, and a background in broadcast media from his time at 2SER Radio. This diverse set of skills has informed his analytical yet creative approach to dissecting financial data and uncovering long-term trends in consumer finance. Cameron is RG146 certified for Generic Knowledge and keeps a keen eye on current and historical deposit and savings rates on the Mozo database. Cameron is also interested in tracking the investment space, particularly share trading platforms, to help Aussie consumers save and invest their money more wisely.