Brought to you by

Speed up your payment times with the addition of BPAY for Xero invoices

Posted 5 months ago in Product by Ben Styles
Posted by Ben Styles

We’ve expanded our online-invoice payment options in Xero for Australia. Xero online invoices tend to get paid an average 33% faster than invoices that aren’t sent electronically*. As well as credit card and digital wallet payments with Stripe and Paypal, you can now offer customers the option to pay with BPAY. This has been one of the most-requested additions from our small-business users. It is among Australia’s favourite ways to pay bills. The average BPAY amount is $823. And 368 million BPAY payments are processed annually via online banking, which averages to over to a million payments a day.**

Adding a payment service in Xero creates a Pay Now button on your invoice, giving your customers a convenient way to pay you faster — and reducing the need to chase payments. And now with BPAY, we’ve given your customers even more ways to pay you online and on time.

byap-xero-addon

BPAY for Xero is powered by DEFT, a product of Macquarie Bank. You’ll find it in the Xero App Marketplace. DEFT also supports credit cards, so you can offer your customers multiple payment options.

BPAY payments direct from invoice

Once BPAY has been enabled in Xero, you can start accepting BPAY payments from the invoices you send. Customers simply click Pay Now on the invoice. They then log into their Internet banking platform to pay via BPAY, a secure, trusted and preferred method of payment. Once the funds are deposited in your bank account, Xero auto-matches the settlements to the paid invoices. Because customers are asked to enter their unique BPAY reference number (CRN or “Customer Reference Number”), each payment can be matched to specific invoices in Xero, making reconciliation a breeze. We think this is truly beautiful, and we hope you will too.

To get started, visit the App Marketplace to set up BPAY.

For further information on why multiple payment options for your customers is a win-win, see the Xero blog.

*Based on a comparison of almost 200,000 online invoices sent from the Xero platform in the year through March 2017 and invoices created in Xero but not sent from the platform.

** BPAY Overview & BPAY Facts

14 comments

ANDREW
May 28, 2017 at 10.58 pm

Awesome. Something customers have been after since I started at Xero. Great work Ben. It’s going to be much appreciated.

Ben Styles
June 16, 2017 at 10.53 am

Thanks for the feedback Andrew. Please let both Macquarie and us at Xero know how your Small Business customers find the service!

Helen Wallace
June 15, 2017 at 3.01 pm

is there a charge for this service

Erin
June 15, 2017 at 3.23 pm

Any idea when this will be available for businesses who bank with Bendigo?

Ben Styles
June 16, 2017 at 10.51 am

Hi Erin,

Macquarie are currently the only provider of this service integrated for Xero customers, as they are the only bank who have invested heavily in their product to enable this after understanding the needs from their customers. As it is the banks that need to invest in uplifting their BPAY technology, we are constantly talking to them about how they can meet the needs of their customers, and encourage you to do so too.

This is a great integration from a forward-thinking partner, and suggest you check it out with Macquarie as the efficiency gain is worth a small up-front investment of time to set up the account.

Abdul Attarwala
June 15, 2017 at 3.43 pm

It requires a Macquarie Bank account. Sorry but no thanks! That’s just too restrictive for a business. We want the freedom to have any bank account.

Ben Styles
June 16, 2017 at 11.07 am

Hi Abdul. All BPAY receivables (raise invoice) solutions in the Australian market today require an account with a master-biller. As Macquarie are currently the only provider of this service who have invested heavily in their product to enable integration for Xero customers, we believe it shows how progressive they are as partners in understanding the needs from our mutual customers.

As you can connect the bank feeds for all of your bank accounts into Xero, with auto-reconciliation of BPAY transactions, plus the ability to set up other transaction rules, we found the solution very powerful for customers when in testing.

This is a great integration from a forward-thinking partner, and suggest you check it out with Macquarie as the efficiency gain is worth a small up-front investment of time to set up the account.

sharon
June 15, 2017 at 4.00 pm

We were super excited about the BPAY option until I saw that we have to open a Macquarie bank account then manually transfer payments to our usual bank account. It kind of defeats the purpose of making payments & reconciliation easier if we then have to rely on manual transfers – more margin for error I think!

Robert
June 16, 2017 at 3.33 pm

Yes I agree

Zane
June 15, 2017 at 4.26 pm

Oh, so not really though? Customers have to go through setting up a Macquarie Bank account in order to use the service? Not really that helpful when direct deposit is just as easy and no need for me to setup a Macquarie Bank account just to accept BPay and then need to transfer funds to our current work accounts.

I had hoped to use this service for a long time – more payment options the better. But not at the expense of complicating things further with yet another bank account.

Deborah Brooks
June 16, 2017 at 1.56 am

How much is the fee?

Aidan
October 12, 2017 at 10.10 pm

Ha – had me mildly excited there for a moment until I saw the need to setup a Mac Bank account complete with set up fees and monthly fees and transaction fees and… and…

Leave a reply

Your email address will not be published. Required fields are marked *