Like most businesses, Dymocks Tutoring takes online payments. And like many, it believes the process could be a lot more efficient.
Dymocks Tutoring is trialling a new payment-collection system that allows it to offer an account-to-account option for once-off and recurring payments for its customers. iStock
Under the bank-transfer payment-collection method that the business had previously been using, payments could take up to a week to clear, says CEO Mark Buckland. If there were any issues with a payment, that could mean a whole week passing before they were flagged.
As a result, the business is trialling a new way of collecting recurring fees for its weekly and full-term tuition, as well as one-off payments for its courses and holiday programs.
The payments solution that Dymocks is trialling, PayTo®, allows businesses to offer an account-to-account option for once-off and recurring payments, meaning customers can pay directly from their bank account using a PayID®, or BSB and account number.
The customers’ account details are verified in a fast timeframe, paving the way for faster funds collection and settlement.
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“As it is a near real-time payment solution, it dramatically reduces the delays caused by our current bank direct-debit solution,” Buckland says.
Customer benefits
Customers also have their own issues with managing their payments. A common challenge is keeping track of multiple direct debits coming out of their account, especially when they’re spread across bank accounts and credit cards.
But this new digital transaction system aims to provide a smooth digital customer experience, allowing customers to see all their recurring payments in one place — via their banking app or online — where they can easily authorise new agreements, or cancel or pause existing ones.
In addition to the added transparency, this also makes for greater security — another reason why Dymocks Tutoring is trialling the technology. With customers required to approve any direct debit/payment requests within their authenticated banking channel, that extra layer of security gives them much needed peace of mind in their interactions with the company.
“One of our motivators has been an increasing concern from customers about the security of their data and payment details,” Buckland explains.
“In an era of ever-increasing data breaches, customers are understandably hesitant to provide payment identifiers and want to be more in control of their financial arrangements. We see this as a perfect way to give customers the control and certainty they seek, all through a system they already have confidence in.”
Telco makes things clear
More Telecom wants to provide its customers with greater transparency and security. iStock
Australian telecommunications company More Telecom will also use the payment solution, and believes it will make online transactions significantly easier.
As well as offering its customers the option to use PayTo to pay bills, More also intends to use it to allow new customers a way to check out online and sign up for its services without needing a credit card.
Faster notifications of when payments are made — and of any pause or cancellation of payments — aims to improve transparency and efficiency for businesses.
It also notifies customers when a payment in connection with their account is made, paused or cancelled, giving customers the same benefits of transparency and efficiency.
“This efficiency enables More to provide a better experience for the customer in relation to payment queries and billing issues,” says More’s chief innovation officer, Ryan Marks.
Banks on board
PayTo is available through online banking with more than 50 banks, financial institutions and credit unions.
CommBank’s general manager for Real Time Payments and Payments as a Service, Alison Chang, says the technology supports several use cases.
“It can be integrated into a business or government entity for their end customers to pay for utilities, fund a digital wallet, transfer funds in me-to-me transactions, buy things in an app, online or instore, as well as subscribing to services,” she says.
PayTo runs on Australia’s real-time payments network, the NPP, operated by Australian Payments Plus (AP+). AP+, which also owns BPAY and eftpos, views PayTo as an important step toward transitioning payments to the NPP and away from the legacy BECS payment system, which is expected to close in 2030. AP+ product lead Oli Mitchell believes the technology’s benefits go beyond replacing direct-debit payments.
“PayTo can be used by businesses to manage disbursements such as payroll, dividends and accounts receivables, by employers sending superannuation payments, and by purchasers completing property transactions,” he says.
Because these agreements can effectively be used as “payment authorities”, Mitchell explains they can also be used by businesses to outsource routine payment processes, such as payroll (up to a pre-approved limit) or invoice payments handled by their accountants.
Things you should know
Commonwealth Bank of Australia ABN 48 123 123 124, AFSL and ACL 234945. PayTo and PayID are registered trade marks of NPP Australia Limited ABN 68 601 428 737.
This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. You should consider seeking independent financial advice before making any decision based on this information. The information in this article and any opinions or conclusions are reasonably held or made, based on the information available at the time of its publication.
