Everything you need to know to be PayTo ready

If you run a business that collects recurring payments, like a gym, a childcare centre, or a utility provider, then you need to be across PayTo.

PayTo is the future of direct debit in Australia. It’s the latest account-to-account payment system built by the New Payments Platform (NPP) that gives businesses and customers more control, faster settlement, and real-time payment authorisations. Really, it’s everything direct debit should have become years ago.

For businesses, PayTo means fewer failed payments, real-time visibility on customer approval, and a smoother onboarding process. For your customers, it provides instant notifications, better visibility of what they’ve approved and how much they’re paying, and more control through their banking app. It’s a win-win and it’s already being supported by major banks, with BECS (the old direct debit system) on track to be phased out by 2030.

Sure, that sounds like a while away, but it’ll be here before you know it. Besides, early adopters will have an edge. By getting comfortable with PayTo now, businesses can iron out processes, train staff and get customers used to the experience before it becomes mandatory. That kind of head start isn’t just about tech, it’s about customer loyalty, operational ease, and staying one step ahead in competitive industries.

Helping customers embrace the shift

We all know customers can be hesitant to switch anything payment-related. Even if the new system is faster, safer, and more convenient, some resistance should always be expected. So, how do you bring customers along for the ride?

Make the value clear: Let them know they’ll have more visibility and control over their payments and that approvals are quick and easy through their banking app. That means they don’t need to download yet another app to access all the benefits – it’s already right there!

Use soft nudges: Once you’ve ironed out all the early-adopter kinks, you could consider updating your payment flow to default to PayTo while still offering the legacy option. You’d be surprised how many customers will go with the flow – if the process is seamless.

Consider offering incentives. A few ideas depending on your revenue model:

• A one-off discount or gift for customers who switch to PayTo.

• Waive new customer fees for customers who sign up via PayTo.

• Entry into a limited-time giveaway or loyalty bonus for early movers.

The goal is to reward the behaviour you want to see while helping customers feel confident making the change, BUT the real key here is to ensure loyal customers who don’t want to transition to PayTo don’t feel disadvantaged or minimised. Otherwise, they may seek out competitors using a more old-fashioned but familiar payments stack.

Your ‘PayTo ready’ checklist

If you feel ready to give PayTo a shot, here’s everything every business needs to check off:

• Ensure you have the right payments partner. Work with a platform that supports PayTo and takes care of the back-end tech for you with minimal disruption to your budget or tech admin load.

• Have a ‘backup’. Selecting a provider that has the capabilities to implement PayTo now, while also supporting your current direct debits on BECS can be advantageous to increase efficiency during migration. After all, not every financial institution in Australia supports PayTo yet. This approach can also provide you with a competitive advantage over PayTo-only vendors.

• Update your billing and payment flows. Whether it’s on your website, app, or in-person, make sure customers can choose PayTo as a payment method and complete their approval seamlessly. This should extend from user interfaces through to staff training.

• Communicate with your customers. Let them know why PayTo is better and how it works. A simple explainer email, on-site FAQs, or even a short video for socials can help.

• Train your team. Make sure your finance and support teams understand the new process and can confidently answer customer questions.

• Monitor and optimise. Use your pau,emt provider’s dashboard to track adoption, spot any drop-offs in the flow, and tweak your messaging or experience accordingly.

Remember, PayTo uses APIs and modern infrastructure through the NPP rather than relying on direct debit’s traditional batch files and overnight processing approach.

 The PayTo advantage

PayTo might not be a household name yet, but it’s quickly gaining traction, with more than a third of consumers ready to start using PayTo. With BECS being phased out in the coming years, all businesses using direct debit will eventually need to make the switch. The businesses that act early won’t just avoid a scramble later—they’ll enjoy smoother operations, faster payments, and happier customers now.

It’s not often that payment infrastructure gets a true upgrade. PayTo is that moment—and it’s one that Australian businesses can’t afford to miss. This is an opportunity for you to be proactive, refine your value proposition, and build strong customer relationships.

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