Aussie small business owners who use Xero and Stripe just got a new tool to help ease the late-payment blues. Zip has officially integrated with Xero’s invoicing platform via Stripe, giving businesses the option to offer ‘buy now, pay later’ flexibility on invoices, while still getting paid upfront.

It’s a smart move aimed squarely at one of the biggest pain points for small businesses: late payments. According to Xero’s latest Small Business Insights report, about half of all payments land in bank accounts later than agreed. Not ideal when you’re juggling bills, wages and growth plans.

More payment choices

The new setup means that if you’re using Xero to send invoices and Stripe to process payments, you can now plug in Zip’s flexible payment options directly into the invoice. Customers can pay in instalments through Zip, but you receive the full amount straight away (minus fees), helping to improve your cash flow without extra admin.

“This integration means small businesses in Australia on the Xero platform, with a Stripe account, can now add Zip’s flexible payment solutions directly on their invoices,” said Zip ANZ CEO Soraya Alali. “It reduces friction at the payment stage and helps businesses get on top of cash flow.”

For customers, it’s all about convenience and choice. The more ways they can pay, the more likely they are to actually do it on time, or even early.

Faster payments, less hassle

Bharathi Ramavarjula, Xero’s SVP of Payments, said offering multiple ways to pay could double the speed of payments.

“We know from our research that consumers expect choice when it comes to making payments,” she explained.

“Giving customers options like Zip helps businesses strengthen their financial position and claw back hours lost chasing late payments.”

Stripe’s Aussie MD Karl Durrance agrees.

“This partnership shows how tech can help small businesses solve real-world problems — like cash flow headaches, overdue invoices and manual reconciliation. It’s about getting paid faster and offering customers more flexibility, which opens the door to growth,” he said.

If you’re already using Xero and Stripe, you can get cracking with Zip straight away. Just head to zip.co/au/business/xero-stripe for all the details.

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