Commonwealth Bank (CBA) has become the first major Australian bank to enable PayTo payments for CBA customers – a new digital way to authorize payments from a CBA bank account, and the latest initiative from New Payments Platform Australia (NPPA).

Eligible CBA clients will be able to manage one-time or recurring new PayTo payment agreements within the safety of the CommBank App and NetBank as part of the PayTo payer capabilities, including the capability to examine, authorize, stop, or terminate payment agreements. Customers who have a CBA bank account that Commonwealth Bank has determined to be an eligible bank account for making PayTo payments and who can access NetBank and/or the CommBank App fall under the category of eligible customers.

This PayTo payer feature can assist provide customers of Commonwealth Bank with better control over payments that are sent directly from their bank accounts, including recurring invoices, subscription fees, and one-time payments. As each new digital PayTo payment agreement is approved through secure banking platforms like the CommBank App and NetBank, it could also lessen fraud.

The Shepherd Centre and Telstra were the participants in CBA’s successful PayTo pilot, marking another first for a major Australian bank. These company customers were able to each make a PayTo payment agreement and receive a payment because of CBA’s collaboration with Paypa Plane1.

“PayTo has the potential to revolutionize payments in Australia. We’re delighted to be at the forefront of this as the first major Australian bank to offer the PayTo capabilities for our payer customers, and to trial the capabilities for our business customers. Innovation is at the core of what we’re doing to support Australians to pay and to get paid and PayTo could set the foundations for significant innovation across Australia’s payments system. The trial transactions we have undertaken with two of our business customers are proof of the benefits that could be on offer to the broader business community, and we look forward to working with our partners to make PayTo a force for positive change in the months and years ahead.”

                        Commonwealth Bank, Executive General Manager Payments, Ethan Teas.

PayTo is not yet generally accessible because it is still in the testing phase for payee CBA corporate customers. With Telstra, The Shepherd Center, and further chosen CBA business clients that satisfy CBA’s eligibility standards, CBA intends to extend the study.

When PayTo is completely implemented, qualified CBA business clients will be able to create PayTo payment agreements as an alternative to direct debit plans and third-party triggered payments like salary disbursements. In addition to accepting credit and debit card payments in eCommerce settings, Commonwealth Bank business customers might also be able to use PayTo.

Because digital PayTo payment agreements allow for near real-time payment processing, contain more information and data than conventional direct debits, and demand payer customers to authorize the PayTo payment agreement, Commonwealth Bank business customers may be able to reduce the costs and delays associated with failed payments as well as improve cash flow and reconciliation with PayTo.

The Group continues to invest in its payment ecosystems including the New Payments Platform, which includes a partnership between Commonwealth Bank and fintech Paypa Plane (NPP).

“We will continue to invest and innovate, working with our partners, to deliver exceptional payment experiences for our customers. The NPP, and in particular PayID® and PayTo, creates the opportunity to build digital, safe, fast, and efficient payment experiences that delight and benefit our customers,”

                      Commonwealth Bank, Executive General Manager Payments, Ethan Teas.