Online accounting firm Xero and PayPal have announced a strategic partnership that will result in a faster, smoother payment experience for businesses.
Xero research shows that small business owners consistently point to delays in getting paid as one of their biggest pain points, which puts a strain on cash flow. Data shows that over 60% of invoices are paid late.
The company is introducing a new integration with PayPal, PayPal Express Checkout for Xero, which is due to be released later this month. With PayPal Express Checkout for Xero, clients will be able to pay in just a few clicks from directly within the invoice, speeding time to funds.
In the seven months to July 2016, more than $121 million ($US 88.6 million) worth of PayPal transactions were processed by small businesses on the Xero platform, representing a 40% growth over the period.
“By enabling third party financial services providers such as Braintree and Paypal to integrate with Xero globally, small businesses are able to offer multiple payment options on an invoice, giving them and their customers choice of payment, ensuring they get paid faster,” said Craig Walker, CTO, Xero.
“Working with PayPal has allowed us to address one of the biggest concerns for small businesses owners: delayed cash flows. By extending our integrations with PayPal payments and automating the invoicing reconciliation process, we are giving customers the tools they need to spend less time chasing money and more time focusing on growing their business,” said Walker.
“This partnership with Xero has allowed us to continue our mission of delivering secure and easier ways for businesses to get paid online,” said Steve Fusco, Vice President and General Manager of North American Distribution at PayPal. “Sometimes it feels like you have to go above and beyond to get your invoices paid, but with PayPal Express Checkout, we are offering Xero customers a faster and simpler way to get paid, and reduce time spent on the payment process to just a couple of clicks.”
PayPal Express Checkout for Xero leverages the newest PayPal API so customers have an in-context experience tied directly to their invoice. Clients can now either log in and pay with PayPal or pay with a credit card, eliminating the process of being directed to a separate website to complete payment. The seamless integration also allows business owners to automatically view and reconcile PayPal transactions from within Xero.
PayPal Express Checkout also offers new functionality when set up with Xero bank feeds that significantly cuts down on manual processes, including the invoice being auto-marked as paid and easier reconciliation, thanks to bank transaction matches with the invoiced amount and PayPal transaction ID.