PayTo: Debunking the Myths

July 14, 2023

What is PayTo?

PayTo is the first piece of account-to-account payments infrastructure in Australia that enables customers to authorise third parties to initiate recurring and one-off real-time pull payments from their accounts. With more banks going live with PayTo, it will modernise Australia’s financial services system in a way not seen before, and will see increased adoption from customers and business alike. David Grant, Growth Manager, Monoova who shares some the common misconceptions and misplaced assumptions about PayTo he has come across in recent conversations:

#Myth 1. PayTo is a Push Payment:

PayTo enables customers to authorise third parties to initiate recurring and one-off real-time pull payments from their accounts. After the customer’s initial authorisation of the payment terms, no subsequent authorisation is needed, unless there is an unexpected change to the payment terms e.g., the price of a subscription increases.

#Myth 2. PayTo is the same as Osko:

PayTo is often summarised as ‘Osko-but-for-business’ and that’s partially true. The difference is Osko is an infrastructure that enables an individual to send money to another individual without the need for a financial intermediary. This is a push payment. With PayTo, the infrastructure allows a merchant to ‘pull’ money from an account with the account-holder’s consent.

#Myth 3. My organisations must be connect to the NPP directly to use PayTo:

You don’t need direct access to the New Payments Platform in order to use PayTo. All you need is an account at one of the many participating organisations that offer NPP services to their clients.

#Myth 4. PayTo is an in-app experience for customers:

There is no need for any additional app download to use PayTo. Instead, when a payer needs to authorise a request for a merchant to take payments from them via PayTo, they’ll be redirected straight to their existing banking app.

#Myth 5. PayTo will allow merchants to access customers banks accounts:

PayTo is a highly secure transaction and cannot bypass the consumer’s bank account or grant merchants access or visibility into accounts. Approvals for transactions using the PayTo infrastructure will be done through the user’s banking application, not the merchant’s. The customer will complete a one-off authorisation with the merchant to pull funds from their nominated account. Then they will receive a notification from their bank asking if they would like to approve the transaction.

If you're interested in learning more on how PayTo can benefit your business, speak to David and the team today.


Monoova Payments Pty Ltd (ABN 38 126 015 227) trading as Monoova (“Monoova”) is the authorised representative of Monoova Global Payments Pty Ltd (ABN 77 106 249 852; AFSL No. 421414 ), the issuer of the Combined Financial Services Guide & Product Disclosure Statement Non-Cash Payment Products and Services dated 20 September 2023. (FSG/PDS). This information is given in summary form and does not purport to be complete. To the maximum extent permitted by law, Monoova does not assume responsibility for, the content, accuracy or completeness of the information presented. Before acting on any information you should consider the appropriateness of the information having regard to these matters and seek independent legal, financial and tax advice. To the extent that the information contained above is sourced from third parties or provides link to third party websites, Monoova takes no responsibility for the accuracy, currency, reliability and correctness of any information included in the material provided by third parties nor for the accuracy, currency, reliability and correctness of links or references to information sources (including internet sites) operated by third parties.

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