The Commonwealth Bank has partnered with fintech Paypa Plane to help businesses move to PayTo functionality on the RBA’s new Payments Platform (NPP), while offering a “superior” payments experience.

PayTo will enable businesses to accept direct debit payments in real time and allow customers to view and manage their direct debits via online or mobile banking.

“Our partnership will accelerate CBA’s delivery of PayTo to our business customers and, over time, will open up other new opportunities to revolutionize the payments experience for businesses and consumers,” said CBA Group Executive Director, Business Banking, Mike Vesey- Lyle.

Along with the new partnership, CBA said it has taken a 20 percent stake in Paypa Plane.

CBA said the platform will be able to deliver cost savings and cash flow assurance to businesses and greater self-governance and transparency for consumers by creating a digital link between the two that provides full transparency of their payment arrangement.

"Our partnership with CBA means that together we can give an immediate boost to the delivery of PayTo through the combination of our technology and CBA's customer base - an important step for the industry and the payments ecosystem," said Paypa Plane CEO Simon Joyce.

"Our partnership represents an important milestone for Paypa Plane, but it also signals a new era for the way both businesses and consumers will be able to think about and manage their payments – which is an exciting outcome for everyone."

Mr Vacy-Lyle said the NPP, launched by the RBA in 2018, had already delivered a range of benefits for consumers and businesses through real-time payments.

These include BPAY's Osko service, which enables real-time payments between accounts at CBA, Westpac, ANZ, NAB and a number of other financial institutions.

"We want to help our business customers offer quality payment experiences that delight their customers, maximize their ability to get paid and spend less time on administration and collections – leaving more time to focus on growing the business si,” said Mr Vacy-Lyle.

John Bragg

John Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.