Consumers will be able to authorise recurring direct debit payments such as gym memberships through their banking app rather than through paper or online forms under a new system tipped to “revolutionise” payments.

The Commonwealth Bank on the weekend became the first of the Big Four banks to switch on a new technology feature known as PayTo, which promises to give customers more control over their direct debit payments.

PayTo is a new option for direct debit payments that has been developed by banks, fintechs and New Payments Platform Australia (NPPA), an industry organisation that runs high-speed payment infrastructure.

The technology, which has also been switched on by Great Southern Bank (formerly known as CUA), promises to make it easier for consumers to view their direct debits, such as subscriptions or regular bills. It also allows people to cancel these recurring payments through their banking app, instead of asking the merchant to stop debiting money. The system is also expected to result in lower overall payment costs for businesses.

The banking industry had previously planned to launch PayTo in July, but earlier this year the Reserve Bank said there had been delays, and it now expected banks to launch the service by April next year.

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CBA’s executive general manager of payments, Ethan Teas, said the new system would be faster, simpler and more secure than the current approach to direct debits. Currently, a new recurring payment such as a gym membership would typically be set up by a merchant on a customer’s behalf, which adds complexity and security risks. The new process will be completed digitally through a banking app.

“Now you could show up to the gym and when you’re signing up for your membership, you get a PayTo agreement sent directly to your banking app,” Teas said.

CBA has trialled the PayTo system with two business customers, Telstra and a not-for-profit, The Shepherd Centre, and some fintechs are also offering services to enable PayTo for merchants.