Key Takeaways
- PayTo is a payment service built on Australia's NPP that lets businesses initiate real-time payments from a customer's bank account
- A PayTo agreement is a digital mandate the customer sets up in their banking app - they can view, pause, or cancel it at any time
- Unlike direct debit (BECS), PayTo settles in near-real-time and gives customers full visibility and control
- QwikPay uses PayTo to load customer wallets - no card network is involved at any step
- Merchants who accept QwikPay QR payments pay zero transaction fees because no card interchange applies
- PayTo launched in 2023 and is progressively supported by major Australian banks including CBA, ANZ, NAB, and Westpac
PayTo is one of the most significant changes to Australian payments in years. Built on the NPP, it lets businesses initiate real-time payments directly from a customer's bank account - with the customer's permission. Here's what it means and why it matters.
What is PayTo?
PayTo is a payment service built on Australia's New Payments Platform (NPP) that allows businesses and service providers to initiate payments directly from a customer's bank account in real time.
Unlike a traditional direct debit - where a business pulls funds from an account using BSB and account number details stored on file - PayTo uses a digital mandate system. The customer authorises a PayTo agreement through their own banking app, and that authorisation lives inside their bank. The customer stays in control.
PayTo launched in 2023 and is being progressively adopted by Australian financial institutions and payment platforms.
What is a PayTo agreement?
A PayTo agreement is a digital payment mandate that a customer sets up through their bank. It authorises a specific business to initiate payments from their account under agreed terms.
Think of it like a direct debit authority, but smarter:
- It lives in the customer's banking app, not on a PDF form
- The customer can view, pause, or cancel it at any time
- Payments initiated under it settle in near-real-time via the NPP
- The business gets cleared funds, not a payment that may bounce days later
PayTo agreements can be set up for one-off payments, recurring payments, or variable amounts - depending on what the merchant and customer agree.
How is PayTo different from direct debit?
Traditional direct debit in Australia runs on the old bulk electronic clearing system (BECS). It is slow, batch-processed, and can take 1-3 business days to settle. Customers have limited visibility into what authorities they have granted, and cancellations can be messy.
PayTo is the modern replacement:
| Feature | Direct debit | PayTo |
|---|---|---|
| Settlement | 1-3 business days | Near real-time |
| Customer visibility | Low | Full - visible in banking app |
| Cancellation | Contact the merchant | Cancel in banking app |
| Failed payment speed | Days to find out | Immediate |
| Infrastructure | BECS (legacy) | NPP (modern) |
For businesses, the shift means faster access to funds and far fewer payment failures from stale account details.
How does PayTo work for merchants?
For a merchant or service provider to use PayTo, they need to be connected to the NPP through a payment platform or financial institution that supports PayTo initiation.
- 1The merchant creates a PayTo agreement request for the customer
- 2The customer receives a notification in their banking app
- 3The customer reviews and approves the agreement
- 4The merchant can initiate payments under that agreement in real time
- 5Funds settle directly into the merchant's bank account
Once authorised, payments are fast, certain, and fee-free at the network level - there is no card network involved and no interchange fee.
How QwikPay uses PayTo
QwikPay uses PayTo to power its wallet system. Customers load their QwikPay wallet from their bank account using PayTo - funds move from their bank into their wallet in real time, with no card network involved.
When a customer scans a merchant's QR code, the payment moves from the customer's QwikPay wallet to the merchant's QwikPay wallet instantly. The merchant's funds are available immediately.
For the merchant, that means:
- No card network, no interchange fee, no merchant service fee
- Zero transaction fees at any volume
- No EFTPOS terminal or card reader required
- Works on any device with a screen
For the customer, it means topping up once and paying anywhere QwikPay is accepted - fast, fee-free, and without sharing card details.
Compare the costs
See how PayTo-based payments stack up against card fees on our merchant fees comparison. For context on why this matters from October 2026, read our RBA surcharge ban guide.
Frequently asked questions
What is PayTo in Australia?
PayTo is a payment service built on Australia's New Payments Platform (NPP) that allows businesses to initiate real-time payments directly from a customer's bank account. Customers authorise PayTo agreements through their banking app, giving them full visibility and control.
What is a PayTo agreement?
A PayTo agreement is a digital payment mandate that lives in a customer's banking app. It authorises a specific business to initiate payments from the customer's account under agreed terms - for one-off, recurring, or variable amounts. Customers can view, pause, or cancel agreements at any time through their bank.
How is PayTo different from direct debit?
PayTo settles in near-real-time via the NPP, while traditional direct debit runs on the legacy BECS system and takes 1-3 business days. PayTo agreements are visible and manageable in the customer's banking app, unlike direct debit authorities which are typically paper-based and opaque.
Do merchants pay fees for PayTo payments?
No. QwikPay uses PayTo to load customer wallets, and payments between wallets carry zero transaction fees. There are no card network fees, no interchange, and no merchant service fee - at any volume.
Which banks support PayTo in Australia?
PayTo is being progressively rolled out across Australian financial institutions connected to the NPP. Major banks including Commonwealth Bank, ANZ, NAB, and Westpac support PayTo agreement management for their customers. Coverage continues to expand as more institutions complete their integration.
Can customers cancel a PayTo agreement?
Yes. One of PayTo's key features is that customers can view, pause, and cancel any PayTo agreement directly through their banking app at any time, without needing to contact the merchant.