Summary
PayTo is a real-time payment method built on Australia’s New Payments Platform (NPP) — launched in 2022, it allows businesses to initiate payments directly from a customer’s bank account after the customer digitally authorises a payment agreement; settlements happen in seconds, not the 1-3 business days of traditional direct debit. This is part of understanding what is PayTo Australia.
PayTo replaces the old BECS direct debit system — unlike direct debit where customers handed over their account details and had little visibility over what was being debited, PayTo agreements are stored in a central mandate registry that you can view, pause or cancel instantly from your banking app
Supported by CommBank, ANZ, NAB, Westpac and most NPP-connected financial institutions — if your bank supports PayID, it almost certainly supports PayTo; PayTo is available in Australia only
If you have ever been caught out by a direct debit you forgot about, had no idea how to cancel a subscription without calling the company, or discovered a payment left your account days after you expected — PayTo was built to solve all of that.
It is one of the most significant changes to how Australians pay for things in decades. Here is everything you need to know.
What is PayTo? What is PayTo Australia
PayTo is a real-time payment initiation service built on Australia’s New Payments Platform (NPP) — the same national payment infrastructure that powers PayID and Osko. It was launched by NPP Australia in 2022 and represents the modern replacement for Australia’s decades-old BECS (Bulk Electronic Clearing System) direct debit system.
In plain terms: PayTo allows a business to pull money from your bank account in real time, with your explicit digital authorisation. You approve a PayTo agreement once — and the business can then debit your account according to the terms you agreed to, instantly, without you having to do anything each time.
Previously known as: Mandated Payments Service — the working title used during development before the consumer-facing “PayTo” name was adopted.
Regulated by: The Reserve Bank of Australia (RBA). Managed by NPP Australia, which operates the PayTo mandate database and underlying infrastructure.
How PayTo works
PayTo introduces a new concept into Australian payments: the PayTo agreement (sometimes called a mandate).
What a PayTo agreement is:
A PayTo agreement is a digital authorisation you give to a business — defining exactly how much they can take from your account, how often, and under what conditions. Think of it as a digital contract that lives inside your banking app, not on a piece of paper or buried in a business’s billing system.
The PayTo process — step by step:
- You agree to pay a business — a streaming service, utility, gym, money transfer service or any other merchant
- The business sends a PayTo agreement to your bank — specifying the payment terms (amount, frequency, limits)
- You receive a notification in your banking app — to review and authorise the agreement
- You approve it digitally — inside your bank’s app or internet banking
- The agreement is stored in the central NPP mandate registry — visible to you through your bank at any time
- The business initiates payments according to the agreed terms — debited from your account in real time
- You can view, pause or cancel the agreement at any time — directly through your banking app, without contacting the business
PayTo vs direct debit — what’s the difference?
| PayTo | BECS Direct Debit | |
|---|---|---|
| Settlement speed | Real-time — seconds | 1-3 business days |
| Authorisation | Digital — in your banking app | Paper form or online tick-box |
| Visibility | Full — agreements visible in banking app | None — no central visibility |
| Cancellation | Instant — cancel via your bank | Must contact the business |
| Fund validation | Yes — checks funds before processing | No — payment may fail days later |
| Merchant notification | Instant | Up to 3 days to know if payment failed |
| Data privacy | Account details not stored by merchant | Merchant stores your BSB and account number |
| Chargebacks | Near-irrefutable authorisation record | Higher chargeback risk |
Why PayTo is better than direct debit
For you as a customer:
Full visibility: Every PayTo agreement you have authorised is visible in your banking app. No more wondering what is debiting your account each month or searching through old emails to find a reference number.
Instant cancellation: Cancel a PayTo agreement directly from your banking app — immediately, without calling the business or navigating a cancellation flow. The business is notified instantly.
Privacy: Your bank account details are not stored by the merchant. The payment is initiated through the NPP’s secure infrastructure — the merchant never sees your BSB and account number in the way they do with direct debit.
Real-time payments: Money leaves your account and the merchant receives confirmation in seconds — useful for time-sensitive payments where delay could cause problems.
Fund validation: PayTo can check whether sufficient funds are available before processing — reducing failed payments and the associated fees.
For businesses:
Instant payment confirmation — no waiting 3 days to know if a payment succeeded or failed. Cash flow certainty improves significantly.
Fewer failed payments — real-time fund validation means fewer dishonours.
Lower dispute rate — the digital authorisation record is near-irrefutable evidence of customer consent.
Which banks support PayTo?
PayTo is supported by all major Australian banks and the majority of NPP-connected financial institutions:
- CommBank ✅
- ANZ ✅
- Westpac ✅
- NAB ✅
- ING Australia ✅
- Bendigo Bank ✅
- Macquarie Bank ✅
- Most credit unions and mutual banks connected to the NPP ✅
The rule of thumb: If your bank supports PayID, it almost certainly supports PayTo. The NPP-connected institution list grows regularly — check payto.com.au for the most current list.
How to manage your PayTo agreements
Once you have authorised a PayTo agreement, you can manage it entirely from your banking app — no need to contact the business.
In most banking apps:
- Open your bank’s app
- Navigate to Payments or Accounts
- Find PayTo agreements or Payment agreements
- View all active agreements — the business name, amount, frequency and next payment date
- Select any agreement to pause, modify or cancel it
What you can do:
- View: See exactly what you have authorised and when payments are due
- Pause: Temporarily suspend a PayTo agreement (the business is notified)
- Cancel: Immediately terminate the agreement — effective instantly
- Transfer: Move a PayTo agreement between accounts at the same bank — without contacting the business. Note: transferring a PayTo agreement from one bank to a different bank is not yet available — this capability is planned for a future release
PayTo and card surcharges — what’s coming in October 2026
From October 2026, card surcharges will be banned in Australia — meaning merchants will no longer be able to charge customers extra for paying by credit or debit card. This makes PayTo even more attractive as an alternative: PayTo payments cost businesses significantly less to process than card payments (no card network fees), and they no longer need to offset those costs with surcharges.
For consumers, this is straightforward: PayTo is free to use at any merchant that supports it.
FAQs (frequently asked questions)
What is PayTo in Australia?
PayTo is a real-time payment method built on Australia’s New Payments Platform (NPP). It allows businesses to debit your bank account instantly after you digitally authorise a PayTo agreement — replacing the old BECS direct debit system.
How is PayTo different from direct debit?
PayTo is real-time (seconds vs 1-3 business days), fully visible in your banking app, instantly cancellable, and validates funds before processing. With direct debit, your account details are stored by the merchant and you have no central visibility over what is being debited.
How do I cancel a PayTo agreement?
Go to your banking app, navigate to PayTo or Payment Agreements, select the agreement and cancel. It takes effect immediately — you do not need to contact the business.
Which banks support PayTo?
CommBank, ANZ, NAB, Westpac, ING, Bendigo Bank, Macquarie and most NPP-connected financial institutions. If your bank supports PayID, it almost certainly supports PayTo.
Is PayTo safe?
Yes. PayTo is regulated by the Reserve Bank of Australia and managed by NPP Australia. Your bank account details are not stored by merchants — payments are processed through the NPP’s secure infrastructure. Each payment requires your explicit prior authorisation.
What is a PayTo mandate or agreement?
A PayTo mandate (or agreement) is the digital authorisation you give a business to debit your account. It defines the amount, frequency and conditions. It is stored in the central NPP mandate registry and visible to you through your banking app at all times.
Does PayTo replace direct debit?
PayTo is designed to eventually replace BECS direct debit for most use cases. The transition is gradual — many businesses still use direct debit in 2026, but adoption of PayTo is growing rapidly, particularly for subscriptions, utilities and financial services.
Related guides
- What is PayID? How to send money in Australia →
- What is a SWIFT transfer? International bank transfers explained →
- OrbitRemit vs bank transfer: which is better? →
This guide is for general information only. PayTo features and supported institutions change regularly — verify at payto.com.au and your bank’s official website. Last updated August 2026.
Sources: QwikPay — PayTo Australia 2026: How It Works (July 16, 2026) | cashwo.com.au — PayTo vs Direct Debit (February 23, 2026) | APS — PayTo Australia: How It Works for Business (May 17, 2026) | Australian Payments Plus — PayTo official (auspayplus.com.au) | ING Australia — What is PayTo (ing.com.au) | GoCardless — PayTo: A comprehensive guide (November 2025) | Stripe — PayTo: An in-depth guide | pyng.com.au — What is PayTo (2026)
