Commonwealth Bank of Australia has become the first of the country's Big Four banks to switch on PayTo, giving customers the ability to authorise recurring payments from within their banking app.
PayTo is a new option for direct debit payments crafted by Australia's banks in concert with New Payments Platform Australia (NPPA).
Users of the system have the ability to view, authorise, pause or cancel payment agreements via their internet banking copnnection or mobile app.
CBA executive general manager payments, Ethan Teas, comments: “PayTo has the potential to revolutionise payments in Australia. We’re delighted to be at the forefront of this as the first major Australian bank to offer the PayTo capabilities for our payer customers, and to trial the capabilities for our business customers."
CBA partnered with A2A payments fintech Paypa Plane - in which it holds a 19% stake - to trial the system with business customers Telstra and The Shepherd Centre.
Telstra used PayTo to create a payment agreement to enable a customer to make a bill payment, and The Shepherd Centre - a disability service provider for children with hearing loss - used PayTo to create a payment agreement to enable a donor to make a donation.
Says Teas: "The trial transactions we have undertaken with two of our business customers are proof of the benefits that could be on offer to the broader business community, and we look forward to working with our partners to make PayTo a force for positive change in the months and years ahead.”
When PayTo for businesses is fully launched, companies will be able to establish it as an alternative to direct debit arrangements as well as third party initiated payments like salary disbursements. CBA business customers may also be able to accept PayTo payments in e-commerce environments as an alternative to credit and debit card payments.