The Problem With Xero's Built-In Payment Options
Xero lets you add a "Pay Now" button to invoices — but only through Stripe or GoCardless. That's fine if you already use one of those providers and don't mind the limitations. But for many businesses, it creates problems:
You're locked to one gateway — If you have a merchant account with Worldpay, Adyen, or another provider, you can't use it through Xero's built-in payments. You either switch providers or miss out on pay-now functionality.
No white-label branding — The Stripe or GoCardless checkout page shows their branding, not yours. For professional services and B2B businesses where trust matters, this is a problem.
Limited payment methods — Xero + Stripe gives you cards and Apple Pay. Xero + GoCardless gives you direct debit. You can't offer both from the same invoice without connecting both providers.
No SMS or WhatsApp delivery — Xero sends invoices by email. If a customer ignores your email (and 80% of payment reminder emails go unread), you have no other channel.
Payment links solve all of these problems without replacing Xero.
How Payment Links Work With Xero
A payment link is a unique URL that takes your customer to a hosted checkout page for a specific amount. You generate the link, add it to your Xero invoice, and the customer clicks through to pay.
The key difference from Xero's built-in options: the payment link connects to your own payment gateway — not Stripe or GoCardless. You keep your existing provider, your negotiated rates, and your merchant account.
Here's the workflow:
Create your invoice in Xero as normal — line items, tax, due date.
Generate a payment link for the invoice amount. Include the Xero invoice number as a reference.
Add the link to the invoice email — paste it into the "Message" field or the invoice notes. You can format it as "Pay this invoice now: [link]".
Send the invoice from Xero — the customer receives the invoice with a clickable payment link.
Customer pays — they click through to a branded checkout page, choose their payment method, and pay.
Reconcile in Xero — match the payment to the invoice using the reference number.
For businesses sending more than 20-30 invoices per month, you can automate steps 2-3 using an API integration that generates a payment link automatically when a Xero invoice is created.
What You Get That Xero Alone Doesn't Offer
Use Any Payment Gateway
Xero locks you to Stripe or GoCardless. Payment links work with 40+ gateways — including Worldpay, Adyen, Square, Authorize.net, and more. If you've spent years building a relationship with your payment provider and have negotiated rates, you don't have to give that up to add a pay-now button.
White-Label Checkout Pages
When a customer clicks your payment link, they see your company name, logo, and colours — not a third-party brand. This matters more than most people think. Customers are more likely to complete payment on a page that looks like it belongs to the business they're paying. See our guide on white-label payment links.
Multiple Payment Methods on One Link
A single payment link can offer cards, bank transfer, Apple Pay, Google Pay, and Open Banking — all on the same checkout page. The customer picks what works for them. More choice means faster payment. See how payment choice reduces DSO.
Multi-Channel Chasing
When an emailed invoice goes unpaid, you can resend the same payment link via SMS, WhatsApp, or even print it as a QR code on a dunning letter. Xero only supports email. A multi-channel collection strategy typically doubles your first-touch payment rate.
Automated Payment Reminders
Set up automated payment reminder sequences that include the payment link. Day 1: invoice sent. Day 7: friendly email reminder with link. Day 14: SMS with link. Day 30: WhatsApp with link. Each message makes it easy to pay in one click.
Xero Payment Links vs Paidnice vs Chaser
If you're looking for Xero AR automation, you've probably come across Paidnice and Chaser. Here's how they compare to using payment links:
Feature | Xero Built-In | Paidnice | Chaser | Payment Links (Shuttle) |
|---|---|---|---|---|
Gateway choice | Stripe or GoCardless only | Stripe only | No payment processing | 40+ gateways — use your own |
White-label | No (Stripe/GC branding) | No | No | Yes — your brand on checkout |
Payment methods | Cards OR direct debit | Cards only | N/A (chasing only) | Cards, bank, Apple Pay, Google Pay, Open Banking |
SMS/WhatsApp | No | SMS only | Email only | Email, SMS, WhatsApp, QR |
Late fee automation | No | Yes | Yes | No (invoicing software handles this) |
Credit checking | No | No | Yes (via Creditsafe) | No |
Pricing | Per transaction (Stripe/GC rates) | From $15/mo + Stripe fees | From £35/mo | Per transaction (your gateway rates) |
The key difference: Paidnice and Chaser are AR automation tools that add features around Xero. Payment links are payment infrastructure — they solve the "how does the customer actually pay" problem, which is the part that has the biggest impact on how fast you get paid.
You can use Chaser or Paidnice for chasing and reminders, and use Shuttle payment links for the actual payment step. They're complementary, not competing.
Setting It Up: Step by Step
Quick Setup (Manual, 5 Minutes)
Sign up for a payment link provider that supports your gateway. Shuttle works with 40+ providers.
Create a payment link for your next invoice — enter the amount, currency, and invoice number as a reference.
Copy the link and paste it into the Xero invoice email message field: "Pay this invoice securely: [paste link]"
Send the invoice from Xero as normal.
This takes about 30 seconds extra per invoice. For businesses sending 10-20 invoices per month, that's all you need.
Automated Setup (API, 30 Minutes)
For higher volumes, use the payment link provider's API to auto-generate links when invoices are created in Xero:
Connect to Xero's API (or use a middleware like Zapier/Make).
Trigger: When a new invoice is created in Xero.
Action: Call the payment link API to generate a link with the invoice amount and reference.
Action: Update the Xero invoice notes field with the payment link URL.
Action: Send the invoice from Xero.
This removes all manual work. Every invoice goes out with a pay-now link automatically.
Common Questions
Will this affect my Xero workflow?
No. You still create, send, and manage invoices in Xero. The payment link is an addition, not a replacement. Your chart of accounts, reporting, and reconciliation all stay the same.
Can I use this alongside Xero's Stripe integration?
Yes. You can keep Stripe connected for customers who prefer cards, and add payment links for customers who want bank transfer, Open Banking, or a different payment method. The link is just a URL — it doesn't interfere with anything else.
How do I reconcile payments in Xero?
When a customer pays via a payment link, the funds settle to your merchant account (via your chosen gateway). You reconcile in Xero the same way you do any bank transaction — match it to the invoice using the reference number. Some payment link providers also offer webhook integrations that can auto-mark invoices as paid.
What about direct debits?
If you're collecting recurring payments (monthly retainers, subscription fees), GoCardless via Xero is still a good option for direct debit. Payment links are better suited for one-off invoice payments where the customer needs to actively pay.
Get Started
If Xero's built-in payment options are too limited — wrong gateway, no branding, one payment method — payment links give you everything Xero doesn't, without changing your workflow.
Shuttle Payment Links connect to 40+ payment gateways, support white-label branding, and work across email, SMS, WhatsApp, and QR codes. See how it works.