Xero introduces Tap to Pay on iPhone for NZ small businesses

Xero has introduced Tap to Pay on iPhone for its customers in New Zealand with a Stripe account, allowing them to accept contactless payments directly through the Xero Accounting app with no additional hardware required.

Tap to Pay on iPhone enables businesses in New Zealand to accept all contactless payment methods, including contactless credit and debit cards, Apple Pay, and other digital wallets, without the need for separate payment terminals.

The service operates via the Xero Accounting iOS app, with transactions completed securely using Near Field Communication (NFC) technology. Merchants prompt customers to hold their iPhone, Apple Watch, or contactless card near the business's iPhone, where the payment is processed.

Tap to Pay on iPhone also supports the entry of PINs, which includes accessibility options for customers, ensuring that a wide range of payment needs are catered for at the point of sale.

The technology uses the security and privacy features built into iPhone devices. According to Apple, when payments are processed through Tap to Pay, card numbers or transaction information are not stored on Apple servers, which supports both merchant and customer data privacy.

Bharathi Ramavarjula, Senior Vice President, Payments & Ecosystem at Xero, said, "Managing payments plays a vital part of the cash flow equation, but small businesses continue to face challenges, including chasing late payments. With so much on their plate already, keeping pace with shifting consumer expectations and market trends can feel overwhelming. That's why payments is such a core part of Xero's business strategy. With the launch of Tap to Pay on iPhone, we're excited to support small businesses to streamline payment processes, enabling them to accept payments on the spot, and maintain a healthy cash flow."

Xero research indicates that customer payment preferences can significantly influence consumer behaviour. According to the research, 38% of New Zealand consumers report being frustrated when their preferred payment option is unavailable. Additionally, 22% state they would consider shopping elsewhere if a business does not offer one of their preferred payment methods.

Xero customers with a Stripe account can access Tap to Pay by using an iPhone XS or later running the most recent version of iOS. The system is designed to be quick to set up, with users able to download the Xero Accounting app from the Apple App Store and begin accepting payments within minutes.

The new offering aims to provide small businesses with additional ways to receive payments, which Xero sees as a key factor in effective cash flow management. By integrating Tap to Pay technology directly into its app, Xero seeks to support small businesses in providing flexible payment options that align with consumer expectations.

Apple notes that encrypted card numbers are only temporarily stored on iPhone during transactions made in Store and Forward mode, underscoring the system's emphasis on security and privacy during payment processing.

Findings from Xero's 'I want to pay that way' research conducted in May 2024, which surveyed 1005 New Zealand adults and 508 small business leaders, further underline the importance of meeting consumer payment preferences in the current marketplace.