Xero Announces BPAY Integration, First NZ Lending Partner

New Zealand-based SME accounting software Xero has made a long-anticipated announcement regarding electronic bill payment capabilities.

Reports from ZDNet on Thursday (Sept. 8) said Xero has now integrated with electronic bill payment system BPAY in Australia, a capability made possible thanks to its new partnerships with the Macquarie Bank DEFT payments system and EFTPOS (electronic funds transfer at point-of-sale) provider Tyro.

The venture will first launch for DEFT to be able to bill customers and for Tyro to be able to pay suppliers. Small businesses will eventually be able to choose more suppliers to receive and send payments through the BPAY bill pay service.

“BPAY is a standardized platform — everyone knows it and understands it — so we’re building it in-app to make it as easy as possible for small businesses to make payments with BPAY or receive payments via BPAY directly out of the app,” said Xero Australia Managing Director Trent Innes, who also first announced the integration at the Xerocon South event held in Brisbane, Australia. “We’re trying to make things as easy as possible for small businesses,” he added.

The move was a direct response to customer demand, said Innes. The integration should be live by the end of 2016, the executive said.

It was also announced the same day that Xero inked a partnership with its first lender in New Zealand, SME financing platform Fuelled, which will be integrated into the Xero platform, allowing small business users to access invoice financing via Fuelled.

Innes told reporters that Xero is focusing on ensuring streamlined data sharing between businesses and their accounts to more accurately and efficiently determine their cash positions.

“It’s about getting as much information into your financial accounts as possible,” he said. “The idea is to go as deep as we can with the banks to make it easier for small businesses.”