Five reasons to use online payment gateways (Sponsored)

Nov 13, 2019

Invoices with an option to ‘pay now’ (via credit card or another online payment method) get settled faster than something that comes in the post. Imagine what that could do for your clients’ cash flow. Here are a few reasons why you should consider hooking them up with online payment gateways.

1. Your clients aren’t getting paid on time the old way

Small businesses are getting slammed by late payments. More than a third of invoices go past due – many of them by several weeks. We all know the results: difficulty paying bills, making payroll, or growing the business. It shatters confidence and sucks the fun out of business.

With online payment gateways, they’ll get paid about 50% faster.

The two most common types of payment gateways are credit card and automated clearing houses (like PayPal). They both halve the wait for payment for US businesses. Invoices sent with these payment options get paid 20 days earlier.

2. Instant payment gateways are only going to get more popular

People are used to paying instantly for consumer goods, and businesses are heading in the same direction. Many debtors like to process expenses quickly to help stay on top of their accounts payable. Letting them pay with credit also gives them cash flow flexibility.

3. It’s actually quite easy to do

You can set up payment processing gateways easily for clients that use cloud accounting software. There’s a setup wizard to guide you and generally no upfront costs. Learn more about connecting payment services to cloud accounting software.

4. It’s cost-effective

Instant payment gateways generally cost nothing to set up, but there is a charge for each transaction. The fee works out to somewhere between 2% and 4% of the value of the invoice. Some providers allow the supplier to pass the cost onto the end customer.

Smart accounting software like Xero will match the fee to the payment to help keep the books in order. It’s a good idea to create some invoice templates with a ‘pay now’ option, and some without. Then the business can choose when they offer it or who they offer it to. Many businesses keep fees down by only offering payment services on invoices less than €5,000.

5. Instant payment works best with online invoicing

Instant payment is part of the ‘do it now’ online culture. When your client sends an online invoice, the pathway to payment is quick and simple for the recipient.

Online payment services are worth a go

Imagine if you could get your clients’ invoices paid two or even three weeks sooner. Multiply that across a year’s worth of invoices and you could unclog cash flow bottlenecks that have held the business back for years.

Consider talking to clients about modern payment services. It’s a simple conversation that could take a lot of pressure off their business.

If you would like to learn more about Xero and the Partner Programme please visit

This article is sponsored by Xero.