CommBank becomes first major Australian bank to enable PayTo payments for CBA customers
Commonwealth Bank has become the first major Australian bank to enable PayTo payments for CBA customers – a new digital way to authorise payments from a CBA bank account, and the latest initiative from New Payments Platform Australia (NPPA).
As part of the PayTo payer functionality, eligible CommBank customers will be able to manage one-off or recurring new PayTo payment agreements within the security of the CommBank App and NetBank, including the ability to view, authorise, pause or cancel payment agreements. Eligible customers include CBA retail and business customers who can access NetBank and/or the CommBank App and have a CBA bank account that CBA has determined to be an eligible bank account to make PayTo payments.
This PayTo payer capability can help provide more control over payments that come directly from Commonwealth Bank customers’ bank accounts, including for regular bills, subscriptions and one-off payments. It may also reduce fraud, as each new digital PayTo payment agreement is authorised through secure banking platforms such as the CommBank App and NetBank.
As PayTo for payee CBA business customers is in the trial phase, it is not currently widely available. CBA plans to expand the trial with Telstra, The Shepherd Centre and additional select CBA business customers who meet CBA’s eligibility requirements.
When PayTo is fully launched, eligible CBA business customers will be able to establish PayTo payment agreements as an alternative to direct debit arrangements as well as third party initiated payments like salary disbursements. CBA business customers may also be able to accept PayTo payments in eCommerce environments as an alternative to credit and debit card payments.
With PayTo, CBA business customers may be able to reduce the costs and delays associated with failed payments, as well as improve cash flow and reconciliation because digital PayTo payment agreements allow for near real-time payment processing, contain more information and data than traditional direct debits and requires payer customers to authorise the PayTo payment agreement.