Xero has announced it has teamed up with Apple Pay, in a move the company says will help its New Zealand and global customers get paid more easily.
The Xero platform has 862,000 subscribers, who will now be able to offer their customers the ability to view and pay an invoice using Apple Pay through Stripe.
According to Xero, invoices paid with a payment service get paid almost 80% faster than invoices that don’t offer a payment service.
The new feature will be available automatically to everyone on Xero using Stripe where Apple Pay is available.
Xero says small business owners consistently point to delays in getting paid as one of their biggest pain points, which puts a strain on cash flow.
According to Craig Walker, Xero chief technology officer, Xero customers sent 15 million invoices globally in the last 30 days alone.
“Based on our current data, over 60% of those invoices will be paid late. Xero’s connection to the payment services of Stripe and Apple Pay will help address this concern for small businesses owners and help businesses get paid faster,” he says.
Walker says mobile payments are the way of the future.
“Attaching a payment option to online invoices helps Xero customers get paid almost 80% faster than invoices that don’t use a payment service - so they spend less time chasing unpaid invoices for a more productive and cash healthy business,” he explains.
“By enabling these connections with payment services, small businesses are able to offer multiple payment options on an invoice, giving them and their customers choice of payment and also the ability to pay the invoice as soon as it arrives, ensuring they get paid faster,” Walker says.
Currently businesses that want to pay an invoice via credit card need to enter their credit card details to complete the payment. Credit card payments via Stripe mean that customers can confirm payment with Apple Pay using their fingerprint ID on their Apple device to confirm the payment quickly.
Xero says businesses who take payments via Stripe and Apple Pay also have an extra level of security. All payments made require a fingerprint or passcode, decreasing fraud, and with it, chargebacks.
"Almost a fifth of online commerce in the United States now happens on mobile devices,” says Cristina Cordova, head of Business Development at Stripe.
“We’re excited to work closely with Xero to help hundreds of thousands of businesses use Apple Pay to get their invoices paid with little more than a fingerprint.”
By connecting Xero users with Apple Pay, transactions will be automatically entered and matched against invoices in Xero. Walker says automating the invoicing reconciliation process makes accounting easier for small businesses.