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How to use PayTo for...Instant one-off and recurring payments

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Last editedMay 20232 min read

Payments aren’t one-size-fits-all. Different payment methods each have their own levels of speed, ease and security, as well as a time and place where they work best. Understanding what those are will enable you to offer a great customer experience and optimise how you get paid.

This article is part of a mini-series that will explore the best use cases for collecting payments with PayTo. So, first things first - what is PayTo? PayTo is a simple and secure way to collect both one-off and recurring payments in real-time from your customer's bank account to yours. It’s the latest innovation from Australia’s New Payments Platform (NPP) - a.k.a the people behind PayID. Basically, think of PayTo as a faster and more flexible alternative to Direct Debit.

So, let’s talk about how you can…

Use PayTo to set up a subscription and collect the first payment upfront at the same time 

If your business offers products or services on a subscription or membership basis then you might ask for the first payment upfront. Or maybe there are initial extra costs that you want to charge. For example, if you run a gym then you might set people up on a recurring payment plan but ask them to pay a one-off cost for a membership card or locker.

Whilst Direct Debit is a great option for subscription payments where you’re collecting the same amount on a regular basis, it requires you to use a second payment method for that first, upfront payment. This means more hassle for your customer who now has to go through two very different checkout experiences.

PayTo is the ideal alternative as your customer can set up a recurring payment and pay the one-off through their bank payment at the same time. Just one checkout with one authorisation request, taking half the time and half the effort to do. Plus, it’s extra peace of mind for you and your business as the upfront authorisation gives you the assurance that your customer has access to the bank account they want to pay from, helping to future-proof the rest of the subscription.

It almost sounds too good to be true, which is why we’ve added a demonstration of exactly how it works below. 

What are the key benefits of PayTo?

  • Setup one-off charges and recurring payments in one go 

  • Instant customer verification and single setup reduce the risk of fraudulent payers whilst helping to increase customer conversion by offering an easy checkout experience

  • Increased transparency as you will receive instant notifications when a customer makes a payment, as well as if they pause or cancel their payment agreement

  • Lower transaction costs compared to using credit cards for one-off payments

  • Easy-to-access data on your Direct Debit Agreements with all payments managed in one place

I want to start using PayTo

If PayTo is exactly what your business needs, then why wait? Our team are payment experts and happy to talk to you about using PayTo Instant Bank Pay - simply click here to get in touch.

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