Payments company Monoova has partnered with accredited data recipient TrueLayer to develop a PayTo offering that will tap into the consumer data right to provide additional account verification.
PayTo has been designed by NPP Australia to allow a payer to authorise third parties to make payments on their behalf. The service is similar to a direct debit arrangement but NPP Australia is betting that it will have superior features to direct debits and will replace them.
People will be able to use PayID when they set up payment arrangements, rather than using their BSB and bank account number. Payers will have greater visibility over their mandate payment arrangements and greater control.
NPP Australia is going live with PayTo at the end of June.
TrueLayer Australia and New Zealand chief executive Brenton Charnley said it will take time for PayTo to ramp up, with some banks saying they will not be ready to join the system until next year.
In the meantime, open banking data will fill the gaps.
Charnley said: “The opportunity for the CDR here is that it can facilitate data enabled payments. Before a payment is made you can verify the identity of the payer and payee, check that the bank account information is correct and check the balance is sufficient
“On top of that, you can use the data to get insights into the customer’s financial behaviour.”
Both Monoova and TrueLayer are in the B2B market; Monoova works with merchants to facilitate real-time payments using the new payments platform; and TrueLayer provides access to open banking data.
“Payments is the biggest use case for CDR,” Charnley said.