Frequently asked questions

PayTo is a new, digital way for merchants and businesses to initiate real-time payments from their customers’ bank accounts.

Merchants can offer PayTo as an alternative payment method for a variety of products and services, such as subscriptions, online or in-app purchases.

Businesses can use PayTo to authorise third parties to manage payments on their behalf, such as payroll and accounts payable.

Third parties such as fintechs and payments service providers, can incorporate PayTo into their own service offerings to broaden their capabilities.

NPP participating organisations are expected to start offering PayTo from mid-2022.

NPP enabled banks, building societies and credit unions, and payment service providers, are expected to support PayTo for their payer customers from end June 2022. Once available, PayTo will roll out progressively from merchants, service providers and other users that have opted to integrate PayTo.

PayTo is an initiative of NPP Australia, the organisation that operates Australia’s real-time payments infrastructure, the New Payments Platform (NPP). The NPP is owned by 13 financial institutions. You can see who by clicking here.

At the core of PayTo is customer pre-authorisation of a PayTo agreement. This agreement contains the payment terms agreed between the payer customer and the business or merchant. PayTo agreements can be pre-authorised within a payer’s usual internet or mobile banking, where PayTo agreements can also be paused, resumed or cancelled.

PayTo agreements can be created using a PayID linked to the payer customer’s bank account OR by using a BSB and account number.

NPP enabled banks, building societies and credit unions, and other payment service providers, are expected to start offering PayTo to their customers from mid-2022. Speak to your financial institution or payments service provider to find out more.

You don’t need access to the NPP to use PayTo. You just need to have an account with a participating NPP financial institution or a commercial relationship with a connected payments service provider.

Yes. Mandated Payments Service was the working title given to PayTo by the industry as it commenced developing and building the service. PayTo is the external market facing name.

Among other use cases, PayTo could be used as a digital and more modern alternative to the current direct debit system. It provides the ability to support a range of different recurring payment types including fixed or variable payments amounts and payment frequencies.