Zepto has released its first PayTo Index report as it surpasses 1 million settled PayTo transactions for Australian enterprise customers, highlighting adoption trends and industry challenges as the country's payments landscape evolves.
The new bi-annual PayTo Index, based on comprehensive and anonymised transaction data from the Zepto platform, captures the momentum of PayTo usage as Australia prepares to retire the Bulk Electronic Clearing System (BECS) in 2030. PayTo operates on the New Payments Platform (NPP), Australia's open-access, real-time payments infrastructure introduced in 2018.
Between October 2023 and April 2025, 800,409 PayTo payments were processed through Zepto, amassing a total value of AUD $511.71 million. As of July 2025, Zepto reports more than 1 million settled PayTo transactions, totalling AUD $612.20 million.
The PayTo Index reveals a high conversion rate for PayTo payments at 99.03%. Median settlement times were recorded at under five seconds, indicating the growing capability for real-time transfers between accounts. The use case with the largest share is Account-on-File (AoF) payments, accounting for 70% of PayTo payments processed by Zepto, which surpasses recurring and one-off transactions.
Quarter-on-quarter, consumer adoption of PayTo continues to rise, with an 80% increase in usage between the second and third quarters of financial year 2025. Median consumer spend during this period reached AUD $352.64, and the lifetime transactions per active account averaged 6.01.
Challenges to adoption
Despite the observed growth, the Index identifies that 90% of Australian retail account-to-account payments still depend on the soon-to-be-decommissioned BECS system. Key hurdles delaying wider adoption include inconsistent PayTo authorisation processes across different banks, which led to conversion rates varying between 35.88% and 73.13% in the third quarter of FY25, resulting in an average agreement conversion rate of 54.52%.
Additionally, the reliance on legacy billing and financial software, combined with low consumer education and awareness, is slowing the transition to PayTo for both businesses and individuals.
Industry trends
The Index highlights sector-specific adoption. The utilities industry is credited as an early adopter, using PayTo to streamline bill payments for efficiency, cost savings, and improved customer experience. Utility retailers report operational efficiencies, reduced transaction costs, and future readiness from offering PayTo options to their customers.
Red Energy, a major Australian utility provider featured in the Index, describes the partnership with Zepto as instrumental in delivering secure, real-time payment options for customers.
Red Energy's partnership with Zepto is about improving our customers' experience and providing them with faster and more secure payment options. The ability to interact with our customers in real time was a big driver for us in adopting PayTo early. At the same time, PayTo is another step forward in our broader digital evolution, expanding the ways in which our customers can interact with us.
Government agencies are also identified in the report, with the prospect of faster payments for services such as tax, JobSeekers, and social support offerings. The report notes that government adoption of NPP and PayTo could assure more timely payments and streamline claim processing for recipients.
In insurance, PayTo's ability to process real-time payments supports faster policy issuance and easier customer transitions when acquiring new assets or changing providers.
Upcoming regulatory requirements are also driving PayTo adoption. Under the Payday Super mandate coming into effect from July 2026, businesses will need to make superannuation payments to employees at the same time as their wages, with PayTo enabling compliance through immediate settlement.
Retail is experiencing growth in the Account-on-File use case. This represents a shift from the traditional card-on-file model, enabling consumers to make repeat or ad hoc payments through pre-approved PayTo agreements with retailers.
Call for collaboration
The Index suggests that further advancements depend on industry-wide collaboration and improvements in the PayTo authorisation process across financial institutions, addressing not only technical but also operational and educational challenges.
Real-time payments via PayTo and the NPP aren't just technology upgrades, they're the foundation for a faster, safer, and more customer-centric economy. The time for true industry collaboration is now so we can enable swift PayTo adoption across the market that puts consumers first. We're proud to be at the forefront of enabling this innovation through our technology, helping enterprises deliver seamless, real-time payments and exceed rising customer expectations.
The PayTo Index will continue to be published every six months, tracking ongoing adoption and serving as a reference point for payment industry stakeholders in Australia.
