PayTo growth accelerates but hindered by poor banking UX: report
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The news: The use of the New Payments Platform (NPP) is accelerating but poor user experience across banking apps is limiting its full potential, according to Zepto’s latest PayTo Index.
The numbers: Zepto’s PayTo platform over the last six months settled 698,731 payments, up 48.9% compared to the six months prior, which totalled $304.07 million (-16%). There was a 96.6% conversion rate over the last six months compared to an all-time rate of 93.35%.
In terms of retail and eCommerce growth, the number of PayTo payments grew 301% over the last six months to 305,842.
The index said more than one-third of account-to-account (A2A) payments in Australia ran through the NPP.
The context: Zepto’s report said that while PayTo adoption was growing steadily, poor user experience (UX) on banking apps was a hindrance to customers finalising their payment.
It said low performers had poor UX such as receiving SMS without links, being presented with low-visibility text notices, and being required scrolling through multiple menus to locate PayTo agreements.
Zepto noted what drove conversion rates were push notifications with direct links to PayTo agreements.
The report said PayTo was poised to be a beneficiary of the Reserve Bank’s proposed banning of credit card surcharges.
PayTo is the NPP’s real-time service designed to largely replace the current Bulk Electronic Clearing System (BECS) which is a batch-based direct debit system. It collects payments from customers’ bank accounts and settles in real time.
In July, Zepto told Capital Brief the rate of growth of NPP transactions for Zepto was outpacing BECS growth. However, its data showed that 90% of Australian retail A2A payments still used BECS.
What they said: The report said that "banks that surface real-time, in-app prompts and deep links to PayTo agreements are achieving dramatically higher conversion rates".
“For example, one bank’s introduction of real-time push notifications lifted agreement conversions from 40% to 70%," it said.
Zepto’s president and co-founder Chris Jewell said: “To truly unlock the full potential of PayTo, we need consistent standards across banks, merchants, and platforms. That means intuitive, real-time authorisation in banking apps, prominent positioning at checkout, and ongoing education to build trust and confidence among consumers”.
The source: Zepto PayTo Index: A New Frontier for Retail & eCommerce
