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How to use PayTo for...subscription payments

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Last editedJune 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. Think of PayTo as a faster and more flexible alternative to Direct Debit.

So, let’s talk about how you can…

Use PayTo to collect subscription payments

Some payment methods, like credit cards, regularly expire and require payers to re-set up and authorise their payment details. Others have delayed notifications, or none at all, so it’s difficult to know when a payment agreement has been paused, cancelled or charged back. If you’re a subscription or membership business then all of this can result in you sending out goods or providing access to facilities without realising the person hasn’t paid. 

Avoid accidental customer churn and failed payments

This is where PayTo comes in. PayTo is a great option when setting up new subscriptions for several reasons, starting with the fact that bank account details never expire and if a customer changes bank their PayTo agreements will automatically go with them. This helps to avoid accidental churn.

Avoid payment fraud

Another reason is that when someone sets up a new agreement they’re required to verify they own the bank account they’re using. Don’t worry - it only takes a couple of clicks as they’re automatically directed to their online banking app, but this step helps to protect against fraudsters using stolen or fake details. 

Avoid the unknown

Finally, PayTo offers advanced transparency. PayTo’s real-time account validation and notifications remove uncertainty before providing products or services, letting you know right away when someone makes a payment or any changes to their agreement. This gives you peace of mind and a more predictable cash flow. 

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?

  • Payments can be collected 24/7/365

  • 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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