Of the main four banks, CBA is the first to provide the PayTo service as a substitute for digital direct debit payments.
The bank announced that its clients can now use their accounts to access the service.
PayTo, a platform for managing and controlling payments, was created by New Payments Platform Australia (NPPA) and the financial industry.
Additionally, it enables companies to build up ‘PayTo Agreements’ with clients, who may subsequently approve the agreements for a more secure payment alternative via their online banking platforms.
The feature was first made available to CBA retail and business clients who had access to digital banking over the weekend.
The “PayTo deployment continues as various organisations complete their unique implementations and live proofing,” an NPPA spokeswoman told iTnews.
Other financial institutions including BankWest and People’s Choice Credit Union anticipate enabling payer customer accounts in the upcoming months (PCCU).
The bulk of NPP reachable accounts should have PayTo enabled by the middle of 2023, according to an NPPA representative.
The Reserve Bank of Australia made “the first ‘in-market’ PayTo payment using Hello Clever’s payment platform this past August,” the NPP Australia representative continued.
