Commonwealth Bank has placed a bet on the rising popularity of paying directly with bank accounts, investing in fintech Paypa Plane ahead of the mid-year switching-on of a new payment capability known as PayTo.
PayTo, an industry-wide initiative, will allow businesses to be paid directly from a customer’s bank account without using the Mastercard or Visa debit card networks, and will give customers more control over direct debits inside banking apps.
CBA is the first bank to make a public move relating to the PayTo system, a new feature of the “new payments platform” which has been merged into Australian Payments Plus.
The initial focus of the “new payments platform”, a real-time system that the banks spent more than $1 billion building on the insistence of the Reserve Bank, was Osko, which makes person-to-person payments. But mid-way through this year the focus will shift to business payments.
Paypa Plane has created user experiences with similar functions to PayTo that can be used for any type of payment, including debit cards, making things easier for merchants. CBA’s deal with Paypa Plane is not exclusive, allowing the Brisbane-based company to work with other banks. Read more from the original source linked below.
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