As a small business owner, you're constantly looking for ways to streamline operations, get paid faster, and improve your cash flow. We at Inform Accounting are always on the lookout for innovations that genuinely make a difference, and Xero's recently launched "Tap to Pay" feature is certainly one of them!
Simply put, Xero Tap to Pay transforms your iPhone (or compatible Android device) into a contactless payment terminal. Gone are the days of needing separate card readers or clunky hardware. With Tap to Pay, you can accept payments directly through your Xero Accounting app – seamlessly, securely, and on the spot.
This feature, powered by our trusted partner Stripe, means your customers can pay you with a simple tap of their physical debit or credit card, digital wallet (like Apple Pay or Google Pay), or even a wearable device.
The process couldn't be simpler:
Create or Select an Invoice: Within your Xero Accounting app, create a new invoice or open an existing unpaid one.
Select "Take Payment": Choose the "Take Payment" option.
Tap to Pay: Present your phone to your customer. They'll then tap their card or device on your phone.
Payment Confirmed: Once the payment is accepted, the invoice is automatically marked as paid in Xero, ready for reconciliation.
Optional Receipt: You can easily send a digital receipt to your customer.
It's that straightforward! No more waiting for bank transfers to clear or chasing delayed payments. To see a video demonstration of Xero Tap to Pay in action and learn more, check out the official Xero page here.
The advantages of Xero Tap to Pay are significant for businesses of all sizes, particularly those on the go:
This is perhaps the most impactful benefit. By accepting payments instantly at the point of sale or service delivery, you dramatically reduce payment delays and improve your cash flow.
Say goodbye to additional devices to carry, charge, and maintain. Your phone is all you need. This saves you money on hardware costs and simplifies your toolkit.
Payments made via Tap to Pay are automatically reconciled within Xero. This eliminates manual data entry, reduces errors, and frees up valuable time for you or your accounting team.
Offer your customers the convenience and flexibility of contactless payments, which is increasingly becoming the preferred method for many. This can enhance their experience and make your business appear more professional and modern.
Whether you're a freelancer meeting clients, a tradesperson on a job site, or a pop-up shop owner, you can now accept payments anywhere you have your phone and an internet connection.
Built with Stripe's robust security features, Tap to Pay ensures that all transactions are processed securely, protecting both your business and your customers' data.
While Xero Tap to Pay is free to set up and has no monthly fees, standard Stripe processing fees apply per transaction. For European Economic Area (EEA) cards, the fee is generally 1.4% + £0.20 per transaction, and for non-EEA cards, it's 2.9% + £0.20 per transaction. These fees are paid directly to Stripe.
Ready to Tap into a Better Way to Get Paid?
As Xero Certified Advisors, Inform Accounting is excited about the potential Xero Tap to Pay holds for our clients. It's a fantastic example of how cloud accounting technology continues to evolve, making financial management more efficient and accessible for small businesses.
If you're already using Xero and want to explore how to set up and leverage Tap to Pay, or if you're new to Xero and curious about how it can transform your business, get in touch with us today. We're here to help you optimise your accounting processes and make the most of Xero's powerful features.
Let's work together to get you paid smarter, not harder!