Xero, Stripe partnership aimed at faster payment times for small business

Stripe and Xero have expanded their partnership to build a deeper integration of Stripe Connect into Xero’s small-business platform that they say will enable greater convenience for customers and automate accounting for transactions. 

Xero will continue to leverage Stripe’s expertise in payments infrastructure to support millions of small businesses on its platform across Australia.

Xero and Stripe began their partnership in 2013 so its users could accept credit and debit card payments.

The partnership evolved over the years as Xero became one of Stripe’s first ecosystem partners in 2018 and now with this integration, businesses can offer end customers to pay invoices using their preferred payment method, automate recurring billing, and reconcile transactions in one click. 

Earlier this year, Xero released data on the health of Australia’s small-business economy from the Xero Small Business Index, revealing a slowdown in Australian small businesses and an increasing lag in payment times.

And recent report from the Australian Small Business and Family Enterprise Ombudsman late last month revealed only three out of 10 big businesses pay their small-business customers within 30 days while nearly one-quarter take more than 120 days to pay up, according to new payment times data.

Ombudsman Bruce Billson said initiatives such as e-invoicing enabled faster payment times and were significantly cheaper to process than other payment methods.

“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,” said Mr Billson. 

“This needs to be taken more seriously. Cash flow is vital to these small and family businesses.” 

Xero chief growth officer Chris O'Neil said speed of payment and cash flow were both crucial for small firms faced with increased costs. 

“Getting paid quickly can be a matter of survival for small businesses in the current economic climate,” said Mr O'Neil. “We expect our continued emphasis on innovation with Stripe to lead to making payment experiences easier and help small businesses make better money decisions.”