What does this mean for global small businesses?
The agreement builds on a long-term relationship which started in 2016, focused on helping small businesses get paid faster. For GoCardless this also represents a doubling down in the accountancy space, a key sector for the fintech as it executes on its ambitious growth plans.
The news comes as small businesses around the world face some of the most challenging economic conditions in recent history, and the pressure is impacting business owners.
According to Xero’s Global state of small business owner wellbeing report, the wellbeing of small business owners is at a level below that of the general population, weighed down by a range of challenges, including cash flow. Through this strategic partnership, Xero’s small business (SMB) customers can improve their cash flow and get paid up to twice as fast by seamlessly connecting their online invoice payments to the GoCardless platform.
The partnership enables Xero’s customers to use GoCardless directly within the Xero platform to easily collect recurring and one-off payments without hidden fees. This is through both direct debit, which minimises the likelihood of late payments, and a GoCardless feature to collect instant, one-off payments powered by open banking in the UK and PayTo in Australia.
Also, SMBs can reconcile payments in Xero, reducing administrative burden. For accountants and bookkeepers, the integration provides an accurate and up-to-date picture of a firm’s financial position. This eliminates the need to follow up with clients about their accounts.
What does the partnership mean for stakeholders?
Seb Hempstead, Vice President of Partnerships at GoCardless, commented: “Our relationship with Xero started with our shared ethos of supporting global small business. Throughout the years our joint customers have told us how much this strategic partnership has transformed their business, from freeing up hours of valuable time to solving their cash flow woes.”
“As we ‘renew our vows’ for another five years, we look forward to bringing the latest in bank payments to millions of small businesses to help them win and retain customers, save time and money, stress less and get paid on time,” Seb Hempstead further commented.
Commenting on the partnership, Leigh O’Neill, EGM – Money at Xero, said: “We’re excited to strengthen our relationship with GoCardless by renewing our partnership. More than ever, with macroeconomic pressures, small businesses worldwide are needing different ways to maintain a healthy cash flow. Our partnership with GoCardless offers Xero customers the ability to tap into GoCardless’ global bank payment network so they can get paid faster.”
The GoCardless integration is available to Xero subscribers in the UK, Australia, Canada, Ireland, New Zealand and the US. GoCardless works with a roster of over 350 partners, including Xero. These alliances allow businesses to seamlessly integrate GoCardless into the software they already use, managing payment and other business activities in one place.