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Tim Dickinson, co-CEO of Assembly Payments, which works with fintechs on NPP connections, said the current digital payment system is aging and has huge failure rates. “PayTo gives control back to whoever it is,” he said.
“Subscription payments with a monthly payment are really hard to withdraw, and the money is taken out without customers seeing it, while credit card subscriptions can be difficult to manage. With PayTo, these can be managed in an app and the system creates a feedback loop for the checks, integrating the mobile into the transaction flow.
Implementing PayTo requires significant changes in banking back-office processes, technical systems and digital channels for customers. NPP wants to ensure that the mandated payment service is built once for multiple purposes.
Simone Joyce, CEO of Paypa Plane, said PayTo will provide banks with the ability to help business customers change the way payments are collected, making them faster and more secure.
“If you are now a SME banking company, they will look for the possibility of sending a payment mandate as a means of getting paid,” Ms. Joyce said.
“If that’s not available, they’ll approach a third party and take the opportunity with them. It is therefore a good opportunity for banks to help businesses interact with their customers. It’s about innovating in ways you get paid.