Red Energy partners with Zepto to introduce PayTo payment

Red Energy has partnered with Zepto to launch PayTo, a new payment method for its customers.

This collaboration marks the first time a major utility provider has teamed up with a payments fintech to introduce PayTo, initially for one-off bill payments with plans to include automated recurring payments in the future. PayTo, part of the New Payments Platform developed by Australian Payments Plus, allows customers real-time settlement of funds and enhanced transparency via their banking apps, promising a more secure payment method authorised through customers' trusted banking environments.

Anthony Young, Retail Financial Controller at Red Energy, highlighted the significance of the launch: "The launch of PayTo is an important step in our digital transformation strategy as it helps us future-proof our payment systems. As we move towards a world where everything, including payments, is managed through the device in our pocket and legacy systems like BECS begin to phase out, we see the New Payments Platform and partners like Zepto as integral to the future of payments—and we're excited to be the first utility provider to offer PayTo to its customers."

Red Energy currently provides electricity and gas to over one million customers across several states, including Victoria, New South Wales, ACT, South East Queensland, and South Australia. By adopting PayTo, customers can initiate payments directly from their bank accounts, thereby gaining greater control and transparency over their payments.

Chris Jewell, CEO of Zepto, expressed his enthusiasm for the partnership: "We're excited to partner with Red Energy on this industry-first initiative. Consumers today demand speed, security and convenience. However, many enterprises are hindered by complex tapestries of payment flows tethered to legacy systems such as BECS—and we're laser-focused on unshackling the potential of modern payment experiences. This collaboration underscores this mission: to level the paying field for large enterprises looking to transform their payment experiences to meet the needs of the modern, on-demand economy. We're looking forward to being a part of Red Energy's long-term payments transformation journey."

Zepto's direct connection to the NPP for PayTo and its advanced API position it as a pioneer in modern financial infrastructure, enabling real-time transactions with enhanced data capabilities. This innovation is intended to optimise end-user experiences and transition away from outdated payment methods.

The decommissioning of the legacy Bulk Electronic Clearing System (BECS) by 2030 prompted Red Energy to incorporate more modern payment solutions, positioning itself ahead of the curve in payment innovations. The service will initially allow for one-off bill payments and refunds, with future enhancements to include recurring payments, integration into Red Energy's mobile app, and payments related to solar rebates.

Tim Fagan, General Manager of Business Payments at Australian Payments Plus, commented on the benefits of this integration: "We're delighted to see Red Energy take advantage of PayTo. It offers greater control and visibility for both businesses and consumers while enabling payments to be processed at any time. Benefits like that are an important part of Australia's payments future."