Xero announced it will wind down its PFM tool and scrap it entirely from 30 November 2014 due to the lack of customers willing to pay for the service.
The company said that instead it would be focusing development resources on its larger and faster growing small business and accountant software products and services, and is also now working with financial advisers in Australia to assist them in managing wealth management clients through Xero’s Cashbook offering.
PFM had originally looked like a complementary space to accounting, Xero chief executive Rod Drury said.
“While a valuable service with many fans, we haven’t seen a mass market of consumers willing to pay for PFM products. The market just hasn’t taken off for any players and relies on advertising-based models that aren’t our business,” he said. “Continuing to invest in a lower margin and lower growth segment no longer makes sense.”
From 30 September, existing PFM customers would be able to continue to use the service past their subscription expiry date at no extra cost until it is shut down, Xero stated.
In a separate statement, the group outlined recent rapid growth in its customer base globally. From 100,000 customers just over a year ago, the group passed 150,000 paying customers in March this year and is now past 200,000 globally. In Australia, the group has passed 75,000 paying customers, up from 51,000 in March.
