General information only. This article is not legal, financial or professional advice. Rules and provider terms can change; check the linked primary sources.

PayTo is an Australian account-to-account payment service built on the New Payments Platform. It enables a business or service provider to establish a digital payment agreement that the customer can authorise through their banking channel.

How it differs from direct debit

Traditional direct debit commonly relies on account and BSB details plus a mandate managed largely by the billing organisation. PayTo agreements are designed to be visible and manageable within a customer’s banking experience. Payments can move using the NPP’s real-time infrastructure, subject to participating institutions and service arrangements.

Potential business uses

  • Recurring subscriptions and memberships
  • Regular invoices and account payments
  • Wallet or account funding
  • One-off payments with an authorised agreement
  • Alternative payment options for higher-value transactions

Questions for a provider

Ask about agreement creation, amendments, pauses and cancellation; customer-bank coverage; payment timing; dishonour handling; reconciliation identifiers; refunds; pricing; and API or platform integration. Customer communication matters because the authorisation experience differs from entering a card.

PayTo should be evaluated as part of a payment mix, not solely as a card replacement. Consider conversion, operational workflows, customer preferences, failure handling and total cost.