We got the privilege to chat with Max Nokhrin, Senior Partnerships Manager for Xero Canada, who shared his thoughts on DirectPay and Clik2Pay, the two new integrations announced by Xero just recently. He shared how are these two integrations going to be helpful in solving rising credit card transaction fees issues, assist small businesses in locating less expensive and more efficient methods of payment, without increasing customer costs, benefit from the use of Interac e-transfer as the default payment method, and some helpful strategies for businesses to overcome these new fees and methods that will aid them in managing their finances.
Max leads Xero’s partnerships discussions in Canada focusing on banks, credit unions and companies in the financial services space. Prior to joining Xero, Max was an early member of the COR.IQ team at Symcor, where he led the creation of a new line of business focused on detecting and preventing fraud. Max has a background in technology and finance, and a passion for wine.
What is your role as Senior Partnerships Manager for Xero Canada, where you lead partnership discussions with banks, credit unions, and companies in the financial services industry?
I work closely with the financial services ecosystem in Canada to bring integrations between Xero and our partners to the Canadian market. While as a global company we have many options for small businesses to connect with to run their business, there’s always a local partner that needs to be integrated – be it a bank or a payment processor. Bank feeds are key for small businesses to get a holistic and accurate view of their business health, and local payment partners are critical to getting Canadian businesses the right options to transact with their customers.
What are your thoughts on DirectPay and Clik2Pay, the two new integrations announced by Xero just recently?
We’re very excited to introduce these two app partners to the Xero ecosystem. Interac e-Transfer is a great payment method for Canadians to use, which is available to everyone in Canada at much better pricing options than credit cards. DirectPay and Clik2pay enable businesses to use the Interac e-Transfer rail for paying their invoices, so it’s exciting to be able to support a Canadian payments option within the Xero App Store.
In view of the fact that rising credit card transaction fees are a growing concern for Canadian retailers and small businesses in the present day, how can these two integrations offer a potential solution to this problem?
These integrations enable Canadian small businesses to leverage the cost effective Interac e-Transfer payments method for billing their customers. e-Transfers have been around for many years and are a ubiquitous means of payment and funds transfers in Canada. Helping our small business customers leverage them to avoid paying high credit card fees is key for Xero in Canada.
How will DirectPay and Clik2Pay aid small businesses in locating less expensive and more efficient methods of payment, without increasing customer costs?
Both apps enable small businesses to connect the Interac e-Transfer payments method to their invoices – enabling their customers to make safe, secure payments without incurring the high costs associated with credit cards. e-Transfers are also available for all Canadians that have an account with a bank or credit union across Canada, making this integration available to all customers.
How will businesses benefit from the use of Interac e-transfer as the default payment method? And how will it ensure that businesses are paid less expensively, more quickly, and with less interest on credit, consequently doubling savings?
Interac e-Transfers are synonymous to cash – without having to go to an ATM to withdraw the cash. The funds are securely withdrawn from your bank or credit union account and sent to the merchant in real-time. There is no credit card processing fee, and for small businesses, there is no opportunity for a chargeback – eliminating stress in managing finances but also avoiding the costs of having to deal with chargebacks. The funds are deposited quickly into the small business’s account. Adding online payment options to your Xero invoices also helps small businesses get paid up to twice as fast.
What, in your opinion, are some helpful strategies for businesses to overcome these new fees and methods that will aid them in managing their finances?
I think it’s all about accessing the most innovative and cost-efficient payments methods available. Credit cards have always incurred a high cost for acceptance up front, but also at the tail end when it comes to chargebacks or disputes. Small businesses can’t afford the time to deal with the management overhead, and looking for alternative options is time-consuming.
At Xero, we’re excited to be able to offer our customers an integrated alternative solution for receiving payments. We also advise our clients to work with their trusted advisor – the bookkeeper and the accountant – to find the best solution available to fit each individual need of the small business.