Companies that want faster payments and less market exposure
Under the current system, a direct debit takes one to three days to clear. However, even a few hours of delays are massively consequential if, for example, you need to convert currency and send it onwards or fund your market account.
For example, remittance companies that offer FX exchange often have to go out to the currency market and enter into short-term forward contracts. These hedges are meant to cover market exposure between when the payer’s debited funds hit your market account and when you can execute the conversion.
With PayTo, the funds can enter your market account and immediately go out for exchange at (close to) the market rate. PayTo vastly shortens the entire remittance process, reducing market exposure and, more crucially, getting the funds to the people who need them.
Trading, investing and banking apps and other financial services companies are in a similar situation. For users on these platforms, their objective is to trade when they see an opportunity. As stocks and cryptocurrencies trade almost around the clock, being able to fund your account and execute your strategy immediately is a huge benefit of PayTo.