One huge headache for small business owners lies in the payment process – specifically, waiting for payments. Yesterday, August 16, accounting software company Xero and PayPal announced a partnership that could speed the time to payment for SMBs and entrepreneurs by eliminating the need for customers to visit a separate website for payment.
Xero bills itself as an online accounting software alternative to QuickBooks, targeting small businesses. It offers online invoicing, a mobile app, and bank reconciliation, along with over 500 third-party application integrations to help with payments.
The integration with PayPal, which is supposed to be released later this month, will allow customers to pay their bills directly within the invoices. Known as PayPal Express Checkout for Xero, it makes the payments process easier for customers. In 2016, $88.6 million worth of PayPal transactions were processed by small businesses on the Xero platform, according to a press release issued by Xero.
On the back end, PayPal Express Checkout for Xero leverages the latest PayPal API, the integrator that makes it possible for software programs to “talk” to each other. Customers can log in to their invoices and make payments with PayPal or a credit card, so they don’t need to visit a separate website to pay. For business owners, they can view and reconcile their PayPal transactions within Xero.
Some other features that might pique business owners’ interest include automations that reduce manual transaction processing time, including:
- Automatically marking invoices as paid within one day of entering the transaction into Xero.
- Automatically creating a separate line for PayPal fees to ease reconciliation for the business owner.
- One-Touch to allow customers to stay logged in to sites, allowing them to pay quickly without needing to type in a password or billing and shipping information.
Xero announced the new PayPal integration at Xerocon 2016, its annual user conference that was held in San Francisco from August 15-17.