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GoCardless, Xero renew partnership to streamline SMB payments

In a move poised to provide much-needed relief to Small and Medium Enterprises (SMEs) navigating tumultuous economic waters, GoCardless, the bank payments company, has announced the renewal of its strategic partnership with Xero, the global small business platform, for an additional five years.

The roots of this collaboration trace back to 2016 when the two industry leaders joined forces with a singular focus: expediting payments for small businesses. This partnership renewal not only reinforces their shared commitment to this mission but also signals GoCardless’ strategic amplification in the accountancy domain. This expansion aligns seamlessly with the fintech’s grand growth aspirations.

The announcement comes at a critical juncture as SMEs worldwide grapple with the harshest economic conditions in recent history, a scenario that has exerted unprecedented pressure on business owners. In response, this strategic partnership emerges as a timely beacon of support.

Xero’s Global state of small business owner wellbeing report highlights the strain faced by these entrepreneurs. The well-being of small business owners, as per the report, stands lower than that of the general population, with challenges such as cash flow exerting significant weight. The renewed collaboration aims to tackle this concern head-on by equipping Xero’s small business clientele with the means to bolster their cash flow, potentially leading to an expedited payment process, up to twice as fast, by seamlessly integrating their online invoice payments with GoCardless’ platform.

This dynamic partnership brings forth a range of advantages. Xero’s customers can now seamlessly harness the power of GoCardless directly within the Xero platform, unlocking the ability to effortlessly collect recurring and one-off payments sans hidden fees. This is facilitated through both direct debit, which serves as a potent deterrent against late payments, and a GoCardless feature designed to gather instantaneous, one-off payments, powered by the prowess of open banking in the UK and PayTo in Australia.

Crucially, the collaboration alleviates not only financial concerns but also the administrative burdens that often weigh down small business owners. By facilitating direct payment reconciliation within the Xero platform, the partnership slashes the time spent on labor-intensive administrative tasks. As a result, SMEs can reallocate their energies toward their core business functions, fostering an environment conducive to growth and innovation.

Transparency and cost efficiency further define the partnership’s ethos. By nullifying hidden fees connected with payment processing, SMEs can now operate with a clearer financial landscape. This newfound clarity empowers business owners to make informed decisions and amplifies the overall profitability of each transaction.

In a holistic sense, the partnership’s impact extends to the emotional well-being of entrepreneurs. Through streamlined cash flow and automated payment processes, the collaboration has the potential to mitigate stress levels among business owners, fostering an atmosphere conducive to creative ideation and strategic planning.

Leigh O’Neill, EGM – Money at Xero, said: “We’re excited to strengthen our relationship with GoCardless by renewing our partnership. More than ever, with macroeconomic pressures, small businesses around the world are needing different ways to maintain a healthy cash flow. Our partnership with GoCardless offers Xero customers the ability to tap into GoCardless’ global bank payment network so they can get paid faster.”

Seb Hempstead, VP of Partnerships at GoCardless, said: “Our relationship with Xero started with our shared ethos of supporting small business. Throughout the years our joint customers have told us how much this strategic partnership has transformed their business, from freeing up hours of valuable time to solving their cash flow woes. 

As we ‘renew our vows’ for another five years, we look forward to bringing the latest in bank payments to millions of small businesses to help them win and retain customers, save time and money, stress less and get paid on time.”

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Yajush Gupta

Yajush Gupta

Yajush is a journalist at Dynamic Business. He previously worked with Reuters as a business correspondent and holds a postgrad degree in print journalism.

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