Accept PayTo Payments with a Business Gateway

PayTo is quickly transforming how Australians pay for goods and services. As a business owner, offering PayTo as a payment option can improve your customer experience, speed up transactions, and reduce failed payments. In this guide, we'll explore what PayTo is, how it benefits your business, and how to accept PayTo payments through a reliable business payment gateway.

What Is PayTo?

PayTo is an initiative by the Reserve Bank of Australia and part of the New Payments Platform (NPP). It allows customers to authorise and control payments directly from their bank account, often replacing the need for direct debits or card-based payments. With PayTo, authorisation happens in real time via a customer's banking app, making it both fast and secure.

Benefits of Accepting PayTo Payments

• Faster Settlement: Payments are processed in near real-time, improving cash flow.
• Reduced Failed Payments: No more bounced direct debits due to insufficient funds—PayTo checks for funds availability before proceeding.
• Improved Customer Control: Customers can pause or cancel mandates, boosting trust and reducing disputes.
• Lower Costs: PayTo transactions may cost less than credit card fees.

How to Set Up a Gateway to Accept PayTo

To start accepting PayTo, you’ll need a payment gateway that supports it. Here’s how to get set up:

1. Choose a PayTo-Compatible Gateway

Ensure your gateway provider supports PayTo as a payment method. The team at Funding Loop can help connect you with modern solutions that include this feature.

2. Link PayTo to Your Business Account

Your gateway provider will help integrate PayTo directly into your settlement bank account, ensuring your customers' payments go straight into your business funds.

3. Implement on Checkout or Invoicing Systems

Whether you're offering online checkout, app-based payments or invoicing, your provider will assist in embedding the PayTo option. It should appear just like any other payment method—simple and secure for the customer.

Which Businesses Benefit Most From PayTo?

• Subscription-Based Services: PayTo can replace traditional direct debits, reducing churn due to payment failures.
• Tradies and Contractors: Get paid faster by offering PayTo as an option on invoices.
• Retail & eCommerce: Use PayTo at checkout to offer another secure, low-cost payment method.

Other Business Finance Solutions That Pair Well with PayTo

Offering PayTo is just one part of a healthy business finance strategy. You might also consider:

• Business Overdraft for flexible working capital
• Line of Credit to support PayTo settlements during tight cash flow periods
• Invoice Finance for businesses using PayTo on large customer invoices

FAQs About PayTo

What banks support PayTo?

Most major Australian banks, including CommBank, NAB, ANZ, and Westpac, have rolled out PayTo capabilities via their apps. Smaller banks are also quickly coming on board.

Can I use PayTo for recurring payments?

Yes. PayTo was designed to replace traditional direct debits and supports both one-off and recurring payments with customer authorisation.

Is PayTo safe for my business?

Absolutely. PayTo uses secure bank infrastructure and requires customer approval for each mandate, greatly reducing fraud and chargebacks.