In this episode, we break down how FinTech companies like Melio actually make money. Melio is an SMB bill pay and receivables platform designed to make paying and getting paid feel as easy as sending a text. Businesses can pay vendors by ACH, credit card even when the vendor doesn’t accept cards or by check, all while keeping everything synced with accounting software like QuickBooks. Vendors don’t even need to sign up to get paid, making admin work painless. So how does Melio generate revenue? Through card payment fees, premium delivery options like expedited checks or real-time international payments, international transfer fees, and embedded partner distribution via syndication with platforms and financial institutions like Shopify and Pfizer. The numbers speak volumes: in June 2025, Xero announced a $2.5 billion acquisition of Melio, citing 80,000 SMB customers, $30+ billion in payout volume, and $153 million in FY25 revenue, with the deal completed by October 2025. Melio’s moat lies in its simplicity, deep accounting integrations, and partnerships that place it where SMBs already operate. By combining workflow and payment rails, Melio keeps cash flow flexible, monetizes organization, and scales through partners turning chaotic accounts payable into a smooth, manageable process.
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I'm Scarlett Sieber with Money 2020, and this is how FinTech companies actually make money.
Take it, today we're going to be breaking down Melio, the SMB bill pay and receivables platform that turns, I'll cut you a check into, it's already handled.
Melio's pitch is simple, make paying and getting paid feel like sending a text.
SMBs can pay vendors by ACH, by card, even when the vendor doesn't accept cards, or by check, while everything stays synced with their accounting, especially QuickBooks.
Vendors don't even need to sign up to get paid.
It's the admin work your bookkeeper hates made painless.
So how does Melio actually make money?
Card payment fees when a business chooses to pay a bill by credit card, commonly around 3% to the payer.
Premium delivery and rails fees such as expedited check delivery or real-time international payment options.
Also international transfer fees for USD or local currency payouts, embedded partner distribution economics through syndication with platforms and FIs, think about Pfizer's cash flow central, Shopify's Bill Pay, etc. which expand volume and revenue reach.
Let's do a momentum check here for a second.
In June 25, Xero announced it would acquire Emilio for $2.5 billion citing the 80,000 S&B customers, 30+ billion dollars in FY25 payout volume, and $153.
Million FY 25 revenue.
Those are some big numbers.
The deal completed in October 25 with Millio's CEO set to lead Xero's combined US business.
That's serious scale and serious validation of the APAR as revenue infrastructure player.
So what exactly is Melio's moat?
Distribution and simplicity, deep accounting integrations with QuickBooks, plus embedded partnerships with giants like Pfizer and Shopify mean Melio shows up where SMBs already live.
And the pay by card, even if your vendor only takes checks trick, keeps cash flow flexibility sticky.
It's workflow plus rails, not one or the other.
Melio monetizes organization, turns chaos into clean, accounts payable, gives SMBs more ways to pay, take a fair fee when speed of cards makes sense, and scale through partners.
That's not just FinTech, that's small business sanity packaged up.
So that's Emilio for you.
If you have any businesses that you want us to feature on how they actually make money, drop them in the comments and maybe we'll feature them.
In the meantime, back over to you.