Westpac has announced the expansion of its PayTo capabilities.
Introduced across banking platforms, including Westpac’s, in April 2023, PayTo offers an alternative to traditional direct debits. This service allows customers to establish and manage digital payment agreements directly from their online or mobile banking platforms.
Initially slow in adoption, PayTo’s integration is set to accelerate as Westpac opens access to big businesses and institutional clients via its QuickStream digital receivables platform.
Jeff Byrne (pictured above), managing director of global transaction services at Westpac, stressed the transformative potential of PayTo in advancing to a digital-first economy.
"PayTo is the next major watershed in the payments industry as we move to a real-time, digital-first economy,” Byrne said.
“We’re proud to be supporting its growth with the launch of our PayTo for billers capability, with smooth integration through payment APIs our clients are already connected to.”
Small businesses utilising Westpac’s PayWay platform are anticipated to gain access later in 2024, broadening the scope of PayTo's applicability.
PayTo has been rolled out to large and institutional clients on Westpac’s QuickStream digital receivables platform. Smaller businesses using the PayWay platform are slated to gain access to PayTo billing features later in 2024.
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PayTo’s design grants customers visibility and control over their financial commitments, facilitating easy management of subscriptions and memberships.
This feature is particularly valuable in an era of rising living costs. Businesses, in turn, enjoy real-time fund settlement and a streamlined, paperless agreement process.
“It’s easy to rack up multiple subscriptions to things like TV streaming services, phone and gaming services, and sports club memberships, and with cost-of-living pressure front of mind for many of us, it pays to have visibility and stay on top of the outgoings,” Byrne said.
PayTo also introduces PayID as a secure alternative for setting up payment agreements, enhancing security by linking payments to a customer’s mobile number or email instead of traditional bank account details.
Byrne also noted that the ability for customers to cancel payment agreements at any time should not deter businesses. Instead, it offers a direct line to customer feedback, providing businesses with real-time insights into customer satisfaction and areas for improvement.
“The other way of looking at it is that you will receive real-time information about your customers’ satisfaction with the service because you'll be notified when they cancel the payment agreement,” he said. “So, you’ve got the opportunity to get on the phone and find out what has happened.”
With consumer demand for PayTo expected to grow, Byrne encourages all Westpac clients to prepare for and embrace this technology.
“There is going to be consumer demand for this, and I don’t want any of our clients to be missing out,” the Westpac leader said in a media release.
Westpac recently reported a downturn in consumer sentiment in its March index; and in another report, identified productivity as key to solving Australia’s housing crisis.
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