Xero to retire app store billing, shift to API tiers

Xero is retiring Xero App Store Subscriptions and moving developers to a pricing model based on connections and Xero API usage. Partners have been asked to shift customers to their own billing systems before 30 June 2026.

The change affects apps that use Xero App Store Subscriptions, known as XASS, for billing. Developers who keep subscribers on XASS beyond the deadline risk losing revenue when revenue-share payouts stop.

Xero has introduced a tiered pricing model that replaces revenue share with fees linked to connections and Xero API usage. All apps using XASS must move to the new pricing plans by the end of June 2026, with the broader migration to the new model set for 1 July 2026.

Actions required

Developers with active XASS plans need to take several steps. Partners have been asked to archive existing XASS pricing plans in the Xero Developer Portal, remove the option for new customers to buy subscriptions through XASS, and redirect purchases to the developer's own billing system.

For existing subscribers, partners must transition customers away from XASS, regardless of the billing platform they choose. Developers are also asked to contact Xero's developer support team during the process so Xero can disconnect subscribers from XASS and reduce the risk of customers being charged twice.

Xero said it will work with app partners on the migration and outlined a separate path for partners that want to manage the process themselves. In both cases, partners still need to contact Xero to arrange the disconnection of subscribers from XASS.

Stripe involvement

Xero is working with Stripe on a process for partners moving from one Stripe account to another, as well as partners shifting from Stripe to a different payments platform.

In a Stripe-to-Stripe move, partners and Xero exchange Stripe account IDs and confirm the partner account is activated. Xero then specifies which customers are included in Stripe. The recipient Stripe dashboard prompts the partner to authorise and accept the transfer. Stripe then runs an automated copy of card data, which can take hours and may extend to 72 hours. Partners then download a mapping file and use it to recreate subscriptions via an API.

For Stripe-to-other-platform migrations, partners must select a new payment processor and confirm whether it is PCI Level 1 compliant. They also need the processor's Attestation of Compliance and a 4096-bit PGP public key hosted on the processor's official domain. Xero, Stripe, and the new processor then initiate a migration using a secure JSON file. The new processor imports the data and provides customer tokens. Partners then recreate subscriptions and billing logic in their own systems.

Revenue risk

Xero has tied the deadline to the continuity of revenue for app partners. XASS revenue-share payouts will cease at the end of June 2026, when apps with XASS customers move onto the new developer pricing plans.

The timeline adds operational pressure for partners that use XASS as their primary mechanism for subscription management, invoicing, and payment handling. They will need to implement their own purchase flows and subscription management, along with customer communications and support during the switch.

Redirecting new purchases away from XASS means developers must update in-app buying journeys and related documentation. Partners also need to ensure any new billing setup aligns with how they manage Xero users, connections, and any usage-based charges they apply on top of the new Xero developer fees.

Xero has prepared guidance on what the Developer Portal will look like after the migration, signalling further changes to the tools developers use to manage plans and billing settings.

Xero framed the transition as a change in how developers are charged for access to the platform. The new structure is designed around tiers based on the number of connections and API usage, rather than subscription revenue share. The goal is to ensure this process is stable and predictable for every developer on the platform.

Xero will contact partners to begin moving XASS subscribers to alternative billing arrangements and ask developers to work with its support team as they plan and execute migrations ahead of the 30 June 2026 deadline.