Stripe and Xero partner to streamline faster payments for SMEs
As costs rise for small businesses, Stripe and Xero's partnership aims to address the urgent need for quick payment times.
Small and medium enterprises (SMEs) are facing increased costs and a crucial need for quick payment times, leading to an expansion of the partnership between Stripe and Xero. The integration of Stripe Connect into Xero's small business platform is aimed at automating accounting transactions and making payments easier for customers. This move, according to the firms, will enable Xero customers to receive payments twice as fast as others.
Xero Chief Growth Officer Chris O'Neil emphasizes the importance of fast payments and cash flow for SMEs, saying, Getting paid quickly can be a matter of survival for small businesses in the current economic climate.†He added, “We expect our continued emphasis on innovation with Stripe to lead to making payment experiences easier and help small businesses make better money decisions.
Stripe Vice President of Global Partnership and Alliances, Dorothy Copeland, shares the same sentiment, saying, "No company wants to chase payments when they could be focused on growing their business.†She added, “Expanding our partnership with Xero will help more small businesses get paid faster and manage revenue with less friction.
According to the Payment Times Reporting Regulator, only three out of ten big organizations pay their small business customers within 30 days. This has prompted Australian Small Business and Family Enterprise Ombudsman Bruce Billson to call for larger firms to take payment times and cash flow more seriously. He stated, “Nearly one-quarter of big businesses are taking four months or more to pay their bills is just not acceptable, and there is little sign of improvement by the worst performing businesses.
Stripe and Xero's partnership, which began in 2013, has already helped Xero customers accept credit and debit card payments and streamline recurring remittances. The extended integration will allow Xero to leverage Stripe's payment infrastructure to support millions of small businesses across Australia, New Zealand, the UK, Canada, and the US.
The partnership between Stripe and Xero is expected to bring significant improvements to the payment experiences of SMEs, helping them make better financial decisions and manage cash flow efficiently.
