PayTo, PayID and the NPP: what every rates team should know

If you’ve ever muttered “surely there’s a better way to pay this” while dealing with rates notices or utilities bills, good news: there is. Thanks to the New Payments Platform (the NPP), a new generation of payment options—namely PayID and PayTo—are stepping up as smarter, faster, and more flexible alternatives to traditional direct debit.

What is the NPP and why should anyone care?

The NPP is Australia’s modern payments infrastructure that enables real-time payments 24/7. It’s the backbone that makes near-instant transactions possible, supporting innovation like PayID and PayTo. Instead of clunky BSBs and account numbers or long waits for processing, NPP-powered payments happen in seconds, are easier to set up, and offer more visibility and control.

In short: it’s a game-changer for how people pay—and how councils and utilities get paid.

Why direct debit isn’t cutting it anymore

Direct debit has had a good run, but let’s be honest—it was designed in the 1980s and still behaves like it. It’s:

• Slow – Payments can take days to clear.
• Opaque – Once set up, it’s hard for the payer to track, pause, or change.
• Risky – If details are wrong or funds are unavailable, things go sideways quickly.
• Rigid – Changes to accounts or preferences mean forms, phone calls, and waiting.

For councils and utilities, this creates friction: failed payments, costly admin, and frustrated ratepayers. Not exactly the smooth, digital-first experience people expect in 2025.

Enter PayID and PayTo: smart, secure, and built for now

PayID and PayTo, built on the NPP, are the evolved options that actually meet the moment.

PayID: the simple address for payments

Instead of handing over bank details, a payer can just enter a PayID—like an email address or mobile number—to send funds. For ratepayers, this means:

• No need to remember BSB/account numbers
• Instant payments to councils and utilities
• Better security, since fewer banking details are shared

For councils, it means fewer errors, faster reconciliation, and happier customers.

PayTo: the direct debit fixer

PayTo takes everything broken about direct debit and fixes it:

• Real-time authorisation: Customers approve a payment agreement in their banking app, instantly.
• Full visibility and control: They can pause, resume or cancel agreements with a tap.
• No surprises: Customers always know who’s pulling funds and when.
• Instant settlement: Funds land in seconds, not days.

For ratepayers, PayTo means control, transparency, and no nasty surprises. For councils and utilities, it means fewer failed payments, real-time cashflow, and lower support costs.

What does this mean for ratepayers?

• Faster payments, no more 2–3 business day delays
• Smarter tools—PayID and PayTo feel like using a modern app, not filling out a fax form
• More control over when and how they pay
• Fewer failed payments and less back-and-forth

In short: a payment experience that fits around their lives—not the other way around.

What does this mean for councils and utilities?

• Lower costs: fewer dishonours, less manual admin
• Faster reconciliation: real-time payments mean less time chasing money
• Higher satisfaction: better experience for customers = fewer complaints
• More digital uptake: modern tools make it easier to shift paper-payers online
• More secure: no need to store or transmit sensitive bank data

Why now?

The NPP is here. The major banks support it. And more and more Australians are starting to expect modern, flexible payment options. Councils and utilities that move first will benefit from cost savings, better customer engagement, and more predictable revenue.

So if you’re still relying on clunky direct debits or hoping paper notice recipients will switch to online payments out of the goodness of their hearts—it might be time to make a digital move.

Want to bring PayTo or PayID to your council or utility? We can help you make the shift easy—for you and your ratepayers. Let’s talk.