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Xero + GoCardless launch integration to help combat late payments in the Americas

Posted 3 years ago in Xero news by Craig Walker
Posted by Craig Walker

Xero and ACH debit payments provider GoCardless have teamed up to launch an integration that solves the problem of late payments in the US and Canada. Businesses can now accept recurring ACH and pre-authorized debit (PAD) payments through GoCardless for Xero. 

Late payments are a big issue for small business and hugely impacts how they make day-to-day decisions. According to the Xero Small Business Fintech Outlook report, more than half of small businesses in the US and Canada have gone through financial challenges in the past five years with cash flow and getting paid on time cited as the top two difficulties faced within the past year. 

So, what effect does this mountain of debt have on the daily operations of small businesses? Late payment forces businesses to waste a great deal of time and money chasing invoices. The good news is that Xero customers who use an invoice payments service such as GoCardless get paid on average 15 days faster than those who don’t.

Why Bank Debit?

According to recent research conducted by Nacha, it is expected that by 2020, ACH will become the most widely used B2B payment method in the US as changing attitudes continue to sweep the nation: 80% of businesses in the US now prefer to receive their B2B payments via ACH debit, while 53% of consumers share the same payment preference for recurring bills. This is mirrored in Canada where PAD is used for around 50% of electronic payments between businesses and is a preferred payment method for household bills and membership fees.

One major factor driving the rise of bank debit payments, particularly for businesses, is the cash flow benefits they bring. While it often takes more than a 30-day invoice term for a customer to pay, with GoCardless for Xero the business gets permission from the account holder to automatically debit money from a nominated account on an agreed day – like the invoice due date. 

Bank debit is also convenient for the end payer. Once authorized, customers don’t have to approve or remember to make individual payments, which simplifies their life. This applies whether it’s a subscription payment, installment or invoice.

By setting up automatic payments by ACH debit or PAD through GoCardless for Xero, businesses can reduce the number of missed payments, and minimize time wasted chasing late payments. This will keep your cash flow in good shape and make your financial admin process far more effective. 

GoCardless for Xero making payments painless 

Xero and GoCardless have been working across Europe and Australia since 2018 and as GoCardless launches in the US and Canada we are excited for Xero users to be able to accept ACH and PAD payments. GoCardless is the world’s only global network designed for direct debit payments and covers more than 70% of the world’s bank debit payments in over 30 countries. 

GoCardless for Xero also enables Xero customers to accept payments from customers both domestically and globally, opening up global opportunities for recurring revenue.

If you’re a Xero user and want to remove the hassle of late payment issues, using GoCardless for Xero is a no-brainer. With the simple integration, you can automate your entire payment and cash-collection process. Giving you time back to grow your business.

Set up GoCardless for Xero or learn more about Xero invoice payments here for the US and here for Canada.

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