Xero to start charging developers API usage fees

Xero is replacing its 15% revenue share model with a tiered API usage pricing structure, charging developers based on connections and API calls. The new pricing model has sparked concerns from bootstrapped startups like RecHound, whose annual API costs could reach $17,340—potentially becoming their second-highest expense. Developers who previously had free API access fear they may need to pass these costs onto customers. Xero has also updated terms to prohibit using API data for AI/ML training and clarified restrictions on bots and browser extensions.