PayTo and PayID are both real time payment methods in Australia, but they serve different business use cases. PayID is best for simple one off transfers, while PayTo is designed for authorised and repeat payments with stronger controls and reconciliation.
Key takeaways
- PayTo supports authorised and recurring payments
- PayID is best for simple one off transfers
- PayTo provides better control, visibility and dispute handling
What is the difference between PayTo and PayID
PayID is an identifier that lets customers send payments using an email address or mobile number. PayTo is a payment authorisation framework that allows a business to initiate payments once a customer has approved an agreement.
When businesses should use PayTo
Use PayTo when you:
- Collect recurring payments
- Need predictable cash flow
- Require customer authorised payment control
- Operate a platform or marketplace
- Want lower failed payment rates
When PayID is sufficient
PayID works well for:
- One off invoices
- Ad hoc transfers
- Low frequency payments
- Simple peer to business payments
PayTo for platforms and SaaS businesses
PayTo allows platforms to manage payment agreements, handle retries automatically and reconcile payments at scale. This is why PayTo is increasingly used by subscription businesses, marketplaces and software platforms.
FAQs
Is PayTo safer than PayID
Yes. PayTo uses explicit customer consent and agreement controls which reduce unauthorised transactions.
Can PayTo replace direct debit
Yes. PayTo is a modern alternative to direct debit with real time visibility and better customer experience.
Does PayTo work with real time payments
Yes. PayTo operates on Australia’s real time payments infrastructure.
Do customers need a PayID to use PayTo
No. PayTo works independently of PayID identifiers.
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