Key takeaways
- PayTo APIs support authorised recurring payments
- Platforms can manage agreements at scale
- Payments settle in real time
Understanding PayTo agreements is essential before implementing PayTo APIs in your platform. For broader context on how PayTo works, refer to our guide on What is PayTo.
What is a PayTo API
A PayTo API enables a business or platform to programmatically create PayTo agreements, initiate payments and manage payment lifecycle events. This removes manual processes and allows payments to be embedded directly into software products.
Why platforms and SaaS businesses use PayTo APIs
Platforms and SaaS businesses use PayTo APIs to:
- Reduce failed payments
- Automate recurring billing
- Improve reconciliation accuracy
- Give customers more transparency
- Replace direct debit with real time payments
How PayTo APIs work step by step
- Platform creates a PayTo agreement via API
- Customer reviews and authorises the agreement
- Agreement becomes active
- Platform initiates payments under the agreement
- Payment status is returned in real time
PayTo API vs card based payments
PayTo APIs avoid card expiry, reduce interchange costs and provide direct bank settlement. This makes them suitable for subscription and invoice based business models.
Common PayTo API use cases
- Subscription billing for SaaS
- Platform and marketplace payouts
- Usage based pricing
- Recurring invoicing
- Account to account collections
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