Partnering Up: Xero and Plaid Simplify Banking for Small Businesses
Small businesses in the United States are set to benefit from a groundbreaking partnership between Xero and Plaid, which aims to significantly improve reliable bank connections for these vital economic players. The collaboration will triple the number of high-quality bank connections available to Xero’s customers, leveraging Plaid's extensive network of over a thousand U.S. financial institutions, including many smaller banks and credit unions that are critical to local economies.
This enhancement is expected to provide small business owners with more dependable, direct, and secure bank connections, enabling a clearer, real-time view of their financial data. This improved visibility supports informed decisions that can foster business growth, support employees, and strengthen the communities they serve.
The partnership comes at a time when small businesses have faced challenges, with a slowdown in growth largely due to fewer new establishments and slower wage growth compared to larger firms. Despite a robust post-pandemic rebound, Main Street businesses grew at a markedly slower pace than the overall U.S. business index during the four quarters ending in Q1 2025 (3.6% vs 2.4% growth). Sectors such as retail and restaurants have been particularly hard hit nationwide.
Beginning this year, Plaid will power an increasing portion of Xero's U.S. bank feed sources. The partnership promises better reliability, higher-quality data integration, and more robust connections across a wide range of financial institutions, ultimately making financial management smoother, more precise, and time-efficient for small business owners, accountants, and bookkeepers.
The collaboration is expected to provide more robust integrations and higher-quality information from a wide range of financial institutions, saving valuable time for those managing the finances of small businesses. This improved financial visibility is expected to empower small business owners to make more informed decisions, supporting their growth, employees, and the communities they serve.
Access to community-focused finance providers is crucial for small businesses, given the vast number of banks and credit unions nationwide. This partnership will significantly improve small business owners' access to reliable bank connections, supporting the growth, employees, and communities served by these small businesses.
[1] Our latest survey among small businesses found that these businesses tend to outperform their larger peers, but have struggled more recently. [2] The slowdown in growth is largely due to fewer new establishments and slower wage growth compared to larger firms. [3] Beginning this year, Plaid will power an increasing portion of Xero's U.S. bank feed sources. [4] The partnership between Xero and Plaid aims to provide small business owners, accountants, and bookkeepers with smoother, more precise, and successful financial management. [5] This partnership is expected to save valuable time for small business owners, accountants, and bookkeepers.
[1] The slowdown in growth among small businesses, as found in our latest survey, is predominantly due to a decrease in new establishments and slower wage growth compared to their larger counterparts.
[2] In an effort to aid small businesses, the collaboration between Xero and Plaid aims to provide more dependable and secure bank connections.
[3] Beginning this year, Plaid will empower a larger portion of Xero's U.S. bank feed sources, offering better reliability and smoother financial management.
[4] The increased partnership between Xero and Plaid promises to save valuable time for small business owners, accountants, and bookkeepers by improving data integration and bank connections.
