Does PayTo match the convenience of credit cards for business transactions?

By Penny Cox (pictured), Chief Revenue Officer, Inlogik

Introduction

Businesses, regardless of their size, industry and geographies, continually seek efficient payment solutions that enhance customer experience, streamline operations and ultimately drive profitability. As payment preferences evolve, businesses must assess which methods align best with their operational needs and customer expectations.

One of the newer payment methods gaining traction is PayTo. PayTo is a modern, consent-based system built on the New Payments Platform (NPP), allowing businesses to initiate payments directly from a customer’s bank account. Unlike traditional direct debit, PayTo requires explicit authorisation for each agreement, giving businesses real-time access to funds while offering customers greater transparency and control. Through conversations with customers and a careful reading of industry trends, it’s become clear that both credit cards and PayTo systems have important places in business transactions. PayTo brings fresh innovation, automation and immediacy. Meanwhile, credit cards continue to deliver tried-and-tested reliability, widespread adoption, and operational efficiency. Advantages that many businesses still depend on heavily.

The rise of PayTo reflects the payments industry’s drive toward innovation, but credit cards remain a foundational tool for business. Together, they contribute to a more flexible, resilient, and efficient payment ecosystem.

With that context in mind, let’s explore why continuing to accept credit cards should remain a strategic priority and how doing so can unlock greater efficiency, additional growth, and improved customer satisfaction.

Enhanced Cash Flow Management

Credit card payments generally translate to faster access to funds. When customers pay via credit cards, businesses often receive immediate confirmation and funds are deposited into their accounts relatively quickly, sometimes on the same day. While PayTo offers emerging capabilities in direct account-to-account payments, settlement times can vary depending on the provider, which may affect short-term cash flow. Faster and more predictable access to funds allows businesses to manage cash flow more effectively, allocate resources efficiently, and invest in growth opportunities.

Streamlined Operations

Implementing an Expense Management System like Inlogik’s ExpenseMe can significantly enhance operational efficiency, financial control, compliance and employee satisfaction. While PayTo solutions are evolving to support greater automation, their implementation and reconciliation processes can vary between providers, sometimes resulting in additional manual effort. In comparison, card-based expense management and reconciliation processes tend to be more standardised, offering a consistent and streamlined approach to financial operations.

Fraud Protection

Credit card transactions inherently offer better fraud protection mechanisms compared to most PayTo solutions. Most credit card processors provide advanced security features, including encryption, tokenisation and fraud detection tools, which minimise the risk of unauthorised transactions. In the event of fraud, business owners can often recover funds more easily with credit card companies, enhancing overall security and peace of mind.

Customer Convenience and Satisfaction

Today’s consumers have come to expect a variety of payment options, and credit cards remain a staple. By accommodating this preference, businesses enhance customer convenience and satisfaction. An easy, hassle-free checkout experience is critical in maintaining customer loyalty and reducing cart abandonment rates. PayTo options can sometimes create friction, particularly if customers are unsure about linking bank accounts or navigating multiple steps before completing a transaction.

Operational Flexibility

Optimal use of credit cards allows businesses to strategically utilise their credit lines for cash flow flexibility, providing instant access to funds for emergencies or growth opportunities without hampering daily operations.

Businesses today operate in a landscape where choice matters. Credit cards continue to provide proven benefits like efficiency, security and customer trust, while PayTo introduces new possibilities for streamlined transactions.

Rather than one replacing the other, these solutions can work together to create a more dynamic payment ecosystem.

While credit cards will continue to be irreplaceable and seen as a powerful tool by current and future business and finance leaders, I’m excited to see how PayTo will evolve over the years and complement existing payment options.