PayTo allows businesses to quickly establish digital agreements with their customers, enabling one-off or ongoing pre-authorised, real-time payments. Each payment request initiated by the business is seamlessly matched with the corresponding customer or invoice record in their system. This simplifies complex payment workflows and improves cash flow management.

Which banks offer PayTo to their end-users?

PayTo is supported by major banks on Australia’s New Payments Platform—such as Commonwealth Bank of Australia, Westpac, ANZ, and NAB as well as a growing number of smaller banks, neobanks and other financial institutions.

Yes. PayTo is protected by bank-grade security and requires end-users to authorise each agreement within their banking app. It includes built-in fraud monitoring, often involving multi-factor authentication, and gives end-users the control to view, pause, or cancel agreements. This helps build the confidence they need to adopt this payment option, especially if they were hesitant to do so under a Direct Debit arrangement. The system is backed by the New Payments Platform and governed by Australian financial regulations.

How is PayTo different from Direct Debit?

Unlike Direct Debit, PayTo offers real-time settlement. End-users (customers) can manage their agreements and payments directly through their banking app, reducing the likelihood of failed payments. If there are insufficient funds, the parties will know immediately rather than waiting days for the funds to clear. Where appropriate, businesses can also perform real-time retries with ease. End-users can authorise and manage their PayTo agreements conveniently within their banking app, making the process simple and user-friendly. Additionally, unlike Direct Debit, end-users can use their PayID to support PayTo payments instead of providing their bank account details. This also simplifies the process for all parties when an end-user decides to change their banking service provider.

What is the difference between PayID and PayTo?

PayID is a service on Australia’s NPP that allows users to register a simple identifier, such as a mobile number or email address, as an alias for their bank details. This eliminates the need to share detailed bank account numbers. PayTo builds on this by offering a complete payments solution, enabling real-time payments based on a pre-approved digital agreement. With PayTo, end-users have the option to provide either their bank account details or their registered PayID as an alias for their bank details to facilitate real-time payments. The PayID option makes it easier for end-users to use PayTo. Additionally, if they change their bank, they can take their PayID with them which may eliminate the need to set up a new PayTo agreement.

Zai Direct Debit API: Automated BECS Payments in Australia

What is Direct Debit and how does it work in Australia?

In Australia, Direct Debit is processed through the Bulk Electronic Clearing System, known as BECS. With Zai, you can set up a Direct Debit Authority with your customer, giving you permission to collect funds directly from their bank account. Using Zai’s Direct Debit API, these payments can be triggered automatically on the dates and terms you agree with your customers.

Every payment collected is deposited into your Zai Balance Account, where you can view, reconcile, and route funds to the next stage of your payment flow. This creates a single, reliable process for managing Direct Debit.

Benefits of Accepting Direct Debit with Zai

Improve cash flow with predictable, automated payments from customers

Save time by reducing manual reconciliation and late payment follow-ups

Provide a trusted payment option widely used across Australia

Link collections to payouts within one platform using your Zai Balance Account

Flexible Options to Accept Direct Debit

Direct Debit API integration

For businesses that want full control, Zai’s Direct Debit API lets you embed Direct Debit payments into your own systems and customer experience.

Hosted forms

Launch quickly and reduce compliance risk with Zai’s hosted forms. Customers enter their bank details securely without you needing to handle sensitive data directly.

Why Choose Zai for Direct Debit

Direct Debit API designed for businesses managing complex payment flows
All funds collected go to your Zai Balance Account for simple reconciliation
Real-time notifications on every payment state so you always know the outcome
Local support to help you grow confidently in the Australian market
Experience operating within Australia’s regulated payments landscape, giving you confidence in a trusted and established provider

How to Set Up Direct Debit for Your Business

Talk to us to get started
Speak with one of our payment solution experts to set up your Zai account and understand the best approach for your business.
Create a pay-in user and securely capture bank details
Set up your customer as a pay-in user, then capture their bank account details securely using Zai’s hosted forms or the Direct Debit API. This creates a bank account record in Zai, which you can then link to a Direct Debit Authority.
Create a Direct Debit Authority
With your customer’s authorisation, a Direct Debit Authority (DDA) is created. This is the approval you need to collect funds from their bank account through BECS.
Initiate payments and track results
Use the Direct Debit API to trigger one-off or recurring payments. Zai processes the debit, sends real-time webhook notifications for each payment state, and once cleared, funds are deposited into the customer’s account within the Zai system, typically in 2 to 3 business days.

Recurring Payments and Stored Details

Once a Direct Debit Authority is active, you can use the Direct Debit API to collect one-off or recurring payments. Whether you charge weekly, monthly, or on another schedule, Zai automates the process so you can focus on running your business.

Frequently Asked Direct Debit Questions

What is Direct Debit and how does it work in Australia?

Direct Debit in Australia operates through the Bulk Electronic Clearing System (BECS). With Zai, your customer authorises you via a Direct Debit Authority which is usually in the form of a signed Direct Debit Request Form and Service Agreement , and you can then collect funds from their bank account as authorised. Payments are initiated through the Direct Debit API and usually settle within 2 to 3 business days, depending on the bank.

How secure is Zai’s Direct Debit solution?

Zai implements enterprise-grade security measures that are certified to ISO 27001 standards. Bank account details are encrypted at the point of capture through the Direct Debit API, with hosted capture also available to reduce your compliance scope.
Zai’s APIs supply detailed records and webhook events at every stage of the payment lifecycle, including authority creation, debit initiation, settlement, dishonour and cancellation. These records give you full visibility and enable your business to build and maintain a complete audit trail within your own systems.

How do customers give authorisation for Direct Debit?

Customers authorise Direct Debit by completing a Direct Debit Request Form and agreeing to the Direct Debit Request Service Agreement. The business collects Direct Debit Authority (DDA) and Direct Debit Request Service Agreement (DDRSA) from customers outside of Zai’s ecosystem. Using Zai’s Direct Debit API or hosted forms, businesses can securely capture customers’ bank account details and link them to the authority, without directly handling sensitive information.

What happens if a Direct Debit payment fails?

If a payment is dishonoured or fails, Zai will send you a real-time webhook notification. This allows your system to decide whether to retry the debit, notify the customer, or take another action.

Can I migrate from BECS Direct Debit to PayTo?

Yes. Certain Direct Debit Authorities can be migrated to PayTo agreements, which provide faster confirmation and more control for customers. Eligibility rules and notice periods apply.

How long do Direct Debit payments take to clear in Australia?

Direct Debit payments typically clear and settle in 2 to 3 business days. Timing can vary depending on the payer’s bank and the time the debit is initiated.

Can I set up recurring Direct Debit payments?

Yes. Once a Direct Debit Authority is in place, you can schedule recurring payments through the Direct Debit API as authorised. This is commonly used for subscriptions, invoices, and regular services.

Where do the collected funds go?

All funds collected are deposited into the customer’s Balance Account within the Zai system. From there, you can reconcile payments or route funds into onward payment flows.

Is Direct Debit available outside Australia?

No. Zai’s Direct Debit is currently supported only for Australian bank accounts under BECS.

Accept Direct Debit Payments with Zai

What is Direct Debit and how does it work in Australia?

On this page:

Benefits of Accepting Direct Debit with Zai

Flexible Options to Accept Direct Debit

Why Choose Zai for Direct Debit

Security, Compliance, and Consent

How to Set Up Direct Debit for Your Business

Recurring Payments and Stored Details

Frequently Asked Direct Debit Questions

What is Direct Debit and how does it work in Australia?

How secure is Zai’s Direct Debit solution?

How do customers give authorisation for Direct Debit?

What happens if a Direct Debit payment fails?

Can I migrate from BECS Direct Debit to PayTo?

How long do Direct Debit payments take to clear in Australia?

Can I set up recurring Direct Debit payments?

Where do the collected funds go?

Is Direct Debit available outside Australia?

Start Collecting Direct Debit Payments with Zai

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