The new mechanism allows electronic receipts to flow into accounting software, eliminating the need to print off a paper version.
Electronic receipts or ‘eReceipts’ are also sent through to individual customers.
The collaboration brings together two powerhouses in the business market space.
Paymark’s eftpos network processes more than 70 percent of the electronic transactions in New Zealand’s retail market.
Xero has 138,000 business customers nationwide, which its CEO Rod Drury says makes up about a quarter of small businesses in New Zealand.
“We have a leading eftpos network and by working with Paymark we can dramatically reduce paper receipts and save small businesses money and time by accurately and automatically capturing expenses directly into the Xero platform,” Drury says.
The technology is similar to that of ride sharing taxi service Uber, which deducts the fare directly from its customer’s bank accounts.
It then sends the receipt from the journey to the customer by email.
Considering Uber’s net worth is US$18.2 billion, paperless technology across other businesses is bound to take off.
The CEO of Paymark, Mark Rushworth, seems to have Uber’s services in mind as he says there’s “unlimited opportunity” to use the technology.
“Wouldn’t it be great if, as you leave a taxi, you could simply wave your bank card or phone over the eftpos terminal to complete the transaction, and leave knowing that your eReceipt is instantly expensed in Xero,” Rushworth says.
He says there will be many benefits for businesses.
“Revolutionising the way we store and use receipts will streamline many processes,” he says.
“It means no more waiting for receipts only to put another piece of paper in your wallet that you’ll need to do something with later. eReceipts will undoubtedly result in increased productivity for businesses.”
The service was announced at the Xerocon conference on Thursday as part of Xero’s latest innovations for small businesses.
It’s expected to be available to businesses in 2015.