The cloud accounting provider has added BPAY to the payment options on its online invoices.
BPAY is a popular way of paying bills, especially among people who have an aversion to credit or debit cards (or just want to avoid surcharges) and are concerned about the potential implications of enabling 'pay anyone' via internet or mobile banking.
This is achieved through Macquarie Bank's DEFT payments service. Charges include a $150 establishment fee, an account keeping fee of $5 per month, an electronic transaction fee of $0.20 per transaction and a BPAY transaction fee of $1 per transaction.
Most other BPAY providers seem to keep their fees secret until you apply to use their service. The only exception we could quickly find was NAB, which charges a $99 establishment fee and 88c per transaction (plus merchant fee if the customer pays by credit card). Although DEFT's charges are higher, the integration with Xero means you don't need to mess around with customer reference numbers and payment reconciliation is simplified.
For more details, see the DEFT/Xero FAQ.
“Technology is key to helping small businesses find success in getting paid faster,” said Trent Innes, Managing Director of Xero Australia. “Our data has shown that businesses using a combination of online payment services are paid 27 per cent faster than those using offline invoices. BPAY is another tool to help small businesses get paid even faster.
“By integrating BPAY with Xero we are expanding the number of ways businesses can get paid. This becomes even more interesting as we head towards the launch of the New Payments Platform later this year, further streamlining the way that individuals and businesses make and take payments.”
Xero plans to allow small businesses to pay their own bills using BPAY starting later this year.
Disclosure: The writer holds NAB shares.