What Is PayTo? A Simple Guide for Australian Small Businesses

You may have heard the term 'PayTo' floating around lately — maybe from your bank, a fintech newsletter, or a business forum. It sounds technical, but the idea behind it is refreshingly simple: a faster, safer, cheaper way to get paid.

Here's what you actually need to know.

What Is PayTo?

PayTo is a payment service built on Australia's New Payments Platform (NPP) — a modern payment infrastructure backed by the Reserve Bank of Australia and rolled out across all major Australian banks.

In plain terms: PayTo allows businesses to initiate real-time payments directly from a customer's bank account, with the customer's explicit authorisation. There are no card networks involved, no intermediary processors, and no delays.

Think of it like a smarter, faster, bank-authorised direct debit — except the payment settles in seconds, not days.

How Is It Different From a Normal Card Payment?

When a customer pays by card, the transaction travels through multiple parties:

• The customer's bank
• The card network (Visa or Mastercard)
• Your payment processor or acquirer
• Finally, your bank account — usually 1–3 business days later

Each party in that chain takes a cut, which is why card processing fees are so high. With PayTo, the payment goes directly from the customer`s bank account to yours — in real time, with no intermediaries taking a percentage along the way.

Is It Safe?

Yes — and in several important ways, it`s safer than card payments.

• The customer authorises the payment through their own banking app, using their bank's security (biometrics, PIN, etc.)
• No card details are ever shared — there's nothing to steal
• Because payments are bank-authenticated, there are no chargebacks from disputed card transactions
• Pyng never holds or touches customer funds — money moves directly between bank accounts

For businesses, the elimination of chargebacks alone is significant. Card chargebacks can cost merchants not just the transaction amount, but also additional fees and administrative time to dispute them.

Which Banks Support PayTo?

PayTo is supported by all major Australian banks, including Commonwealth Bank, ANZ, NAB, Westpac, and most smaller banks and credit unions. Adoption across the banking system has grown steadily since the NPP's rollout, and coverage continues to expand.

What Does This Mean for Your Business?

If you accept payments via Pyng, you`re using PayTo. That means:

• Zero transaction fees — the expensive card networks are bypassed entirely
• Instant settlement — money appears in your account in seconds, not days
• No chargebacks — payments are bank-authorised and final
• No card reader required — a simple QR code is all you need

For small businesses operating on tight margins, this isn`t just a nice-to-have. It's a genuinely different way of getting paid — one that's built for businesses, not banks.

Is PayTo the Future of Australian Payments?

The RBA has been clear about its intent: it wants to modernise Australia's payment infrastructure and reduce reliance on expensive overseas card networks. PayTo is a central part of that vision.

As consumer awareness grows and more businesses adopt QR-code-based payments, bank-to-bank payments are likely to become a mainstream option alongside (and increasingly instead of) card payments.

Getting ahead of that shift now means you're not scrambling to catch up later — and you're saving money in the meantime.

Want to try PayTo for your business? Pyng is up and running in under 24 hours. Apply now — no lock-in, no paperwork, no fees.