Online accounting firm Xero is branching out into accepting point of sale contactless payments, using smartphones. The payments functionality has been up and running in Australia, where Xero users can use both Google Android devices and Apple iPhones, and the UK, which has iPhone functionality only.
New Zealand Xero users wanting to use the merchant payments will only have Apple iPhone support to start with. A Xero spokesperson said Android will be next in New Zealand, but didn't say when. For now, Xero Tap to Pay requires an iPhone XS or newer smartphone, with the baked-in security for transactions that Apple offers.
The Tap to Pay service is aimed at small businesses, and Xero said it is available on all its plans. It works through the Xero mobile app, with no additional hardware required like payments terminals. Xero said small businesses can accept credit and debit cards, Apple Pay and digital wallets, basically anything that uses Near Field Communication (NFC) for contactless payments.
You need an account with United States-based Stripe however, and the Tap to Pay feature requires the seller to create an invoice first, which is then paid by the customer or client. As Xero says; "Tap to Pay works a bit differently to most payments terminals," so it's not a direct replacement for them.
Receipts are optional and can be sent to customers if required.
Tap to Pay is subject to Stripe's regular fees, which in New Zealand are 2.7% + 20 cents per transaction for domestic cards, and 3.5% + 20c per transaction for international cards, the Xero spokesperson said. In Australia, the charges are 1.7% + A25c per transaction for domestic cards (inc. GST), and 3.5% + A25c for international cards.
The spokesperson declined to comment on whether or not Xero gets a cut of the Stripe fees, citing commercial sensitivity.
BNZ Payap update: more than a thousand users currently
Meanwhile, BNZ's Payap which requires a compatible electronic funds transfer at point of sale (EFTPOS) terminals, is up and running. The drawcard for Payap is the low 0.39% transaction fees and compatibility with all NZ banks.
Jonathon Dale, head of payments development at BNZ told interest.co.nz the bank is "delighted with the response to Payap to date, with thousands of businesses now signed up and more than 1,000 people using the app as early adopters."
"As part of our rollout strategy, we've prioritised business onboarding to build a strong network where New Zealanders can use Payap and are now progressively transitioning users off the consumer app waitlist as we expand availability over the coming months," Dale said.
Payap now supports both in-store and online payments as well, he said.
Asked if any big-name organisations have come aboard, Dale said Payap's merchant base spans from corner dairies through to well-known national brands.
"We expect to announce merchant activations including some household names in the coming weeks, which will further demonstrate Payap's scalability across different market segments," Dale said.
"The early traction shows New Zealand businesses and consumers were ready for a comprehensive open banking payment solution that works with all major banks, delivers real cost savings and makes it easier to manage your money," Dale added.
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