Amazon Introduces Bank-Powered Payment Option in Australia

Amazon adopts PayTo with NAB to reduce costs, improve security and offer customers more payment flexibility. The move seeks to reshape online payments but challenges Visa and Mastercard dominance.

Amazon has rolled out a new way for Australian customers to pay, called PayTo, which allows direct transactions from bank accounts. Partnering with National Australia Bank (NAB), this innovative system bypasses traditional credit and debit cards, reducing merchant fees associated with Visa and Mastercard networks. Designed under the bank-owned New Payments Platform, this method promises real-time transactions and added security.

Currently, PayTo enables users to authorise payments directly via their bank app, setting spending limits for smoother checkouts. Unlike existing options, customers won’t need to store sensitive card details or manually input numbers. The shift mirrors a growing global trend of businesses adopting account-to-account payments to combat fraud and lower operational costs—a shift that’s becoming increasingly popular, especially in Europe.

For Amazon, these upgrades streamline processes, cut reconciliation costs, and enhance cash flow transparency. Developed in collaboration with NAB and fintech Banked, this solution reflects a broader industry push led by the Reserve Bank of Australia to promote innovations like PayTo as viable alternatives to traditional payment systems, such as BECS direct debit, set to phase out by 2030.

This development showcases Amazon’s push toward diverse payment solutions. It also highlights how NAB and other major players continue to redefine the future of payments by targeting more efficient, real-time systems to cater to evolving consumer preferences.

Source: Australian Financial Review, National Australia Bank, Reserve Bank of Australia