‘All you can eat Xero data buffet’ comes to abrupt end

In a statement on its website, the accounting software giant announced two important updates, including the “evolution” of the developer pricing model and an update to the developer terms and conditions.

Xero said the updates came as it moved to ensure it was providing a platform that gave users “greater clarity, stability and control of your development journey”.

It was noted by the software giant that pricing changes were set to take effect on 2 March 2026, and that it was retiring its current revenue share model of Xero app store subscriptions and commercial billing, to introduce a five-tier system: starter, core, plus, advanced and enterprise.

“These tiers are based on connections and data egress volume via the Xero APIs, making it easier to access benefits as you grow and scale, while also making it clearer for you to forecast and control costs,” Xero said.

In a LinkedIn post, Laurel Millar, RSM Australia digital advisory national director, said this new tiered pricing model for developers was based on the number of API connections and data egress volume via Xero APIs. 

It was also shared that fees would range from $0 for a starter to $1,445 per month for advanced, with additional charges for high data egress.

“Is this the beginning of the end for the Xero ecosystem 'all you can eat' data and transaction buffet?” Millar said.

“There will be no more free API access, where previously many developers accessed Xero APIs for free. Under the new model, developers will incur significant costs, which could become one of their largest expenses.”

Based on her own professional thoughts and opinions, Millar said these changes could impact end-users of add-ons for Xero by incoming price increases, usage-based pricing tiers for transaction volumes in systems, reduced free trial periods, more established apps with better capital having the opportunity to prevail in the market over smaller apps and potential changes to batching and journalling processes for apps with higher volumes.

Comments have continued to circulate on the online platform about the announcement since it was made by Xero, including: “A disappointing pivot in strategy. I remain hopeful Xero will listen to all their ecosystem partners that help make them successful.”

“It’s a shame there was zero consultation and discussions ahead of such abrupt changes; these will ultimately be paid by the end customers as another tax which many businesses will struggle with. As a community app partner, we will fight for users and the community as best we can.”

Also posting thoughts to LinkedIn was John Munden, Cloudoffis chief strategy officer, who said that amid the whirlwind of change and the outrage it caused, it was important for everyone to remember that change within the industry was inevitable.

“Platforms evolve, business models mature, and the demands on infrastructure only increase. In that sense, a shift toward usage-based pricing isn’t surprising, and many global SaaS companies have moved the same way,” Munden said.

“What feels more significant is how this change arrived. For many firms and app partners, API access isn’t a “nice to have”; it’s the backbone of reporting, analytics, and workflow automation. Changes of this magnitude reshape operating models, resourcing and even the economics of innovation. Those conversations deserve space.”

Heather Smith, Xero for Dummies author, Accounting Apps podcast host and thought leader, also weighed in on the announcement, sharing her extensive knowledge in the accounting tech space.

Smith said the new pricing plan replaced a scheme where Xero clipped 15 per cent of monthly revenue (excluding fees) on sales made via the Xero App store. 

“The old pricing model was rather clunky, and many apps could not align to Xero’s requirements to actually pass the costs on. Clearly, it was not generating as much revenue as they thought it would,” she said. 

“With the new pricing, if the App needs to connect with the Xero Practice Manager API, the minimum annual cost is $17,340 ($1445). For Apps with deep API integration, they are looking at an additional $10K a month, that’s the cost of a full-time salesperson’s salary.”

Smith added that while it was clear many of the Apps were going to incur additional costs, it was important to think of the implications for end users. 

“In all likelihood, the costs will be passed on. While it may not be a direct price increase, it may mean less resources are put towards end-user support, or future product development,” she said.

“What’s more concerning to me is that the barrier to entry shall stifle innovation in the ecosystem. It’s exciting to watch developers tinker, to beta test a shiny new solution, and to visit Xerocon’s start-up alley.”

“This new pricing model really needs to offer a two-plus-year transitional period for start-ups, to nurture new solutions, and keep the ecosystem exciting.”

Munden added that from this announcement and the disappointment of the majority, it was important to adapt the change and move forward as a unified industry.  

“The accounting ecosystem has always been at its best when platforms and partners work side by side, sharing context, pressure testing ideas, and understanding the downstream impact together. This announcement landed without that sense of shared dialogue,” he said.

“As an industry, we’ll adapt as we always do. But moments like this remind us how important it is to keep the lines of communication open, especially when the decisions reach far and wide.”

Xero has replied to numerous posts on LinkedIn, thanking people for their views and perspectives. 

In a statement provided to Accountants Daily, a spokesperson for Xero said the provider has been working under a revenue share model with our developer partners.

"Beginning on 2 March, 2026, Xero will retire the current revenue share model and move to a commercial tiering model based on connections and Xero API usage," the spokesperson said.

"As the Xero ecosystem grows, this commercial tiering model and usage based pricing is designed to meet developers where they are in their app development journey, making it easier to access benefits and forecast as they grow and scale. The Starter tier starts at $0, making it accessible for new developers and early-stage apps."

"We have revised our Xero Developer Platform Terms and accompanying Commercial Terms to support this new model," the spokesperson concluded, noting more information is available on its website.