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Shopify Partners with Melio to Launch Direct Bill Payments: A Seamless Fintech Experience for Merchants

Shopify, the e-commerce giant, has joined forces with Israeli B2B payments startup Melio to unveil a cutting-edge bill pay tool for US-based merchants. This innovative solution allows merchants to manage their expenses and vendors effortlessly through Shopify's platform, marking another milestone in the company's mission to bridge the gap between fintech and commerce.

Shruti Patel, Global Head of Merchant Services Partnerships and Monetization at Shopify, highlighted that the driving force behind this new feature is to help merchants save time and effort on tasks like consolidating invoices and paying bills. This way, they can concentrate on expanding their businesses. Shopify's decision to add money movement capabilities was also influenced by merchants' requests.

Since its inception, Shopify has been on a fintech journey. The company first introduced payments powered by Stripe, which offered valuable insights into payment data. In 2016, Shopify Capital was launched to cater to merchants' micro and macro lending needs, followed by the debut of Shopify Balance, a money management tool, in 2021.

Shopify's bill pay feature, in collaboration with Melio, is designed to be a fully integrated accounts payable solution within the store administration. Unlike traditional financial institutions, which often provide a fragmented bill pay experience, Shopify allows merchants to choose from various funding sources, such as a bank account, Shopify Balance, credit or debit card, or an ACH bank transfer. This flexibility even enables merchants to pay with credit cards when vendors don't accept them.

Additionally, Shopify's solution offers cost and speed advantages, with the capability to schedule payments up to four days faster than a traditional bank. Merchants can also pre-schedule payments for added convenience. While the bill pay feature is free for Shopify merchants, minimal fees may apply for certain payment methods, such as credit cards.

This new offering grants Shopify invaluable insights into merchants' spending habits and vendor preferences. Banks typically have access to this data but don't utilize it to support small businesses. Shopify, on the other hand, aims to leverage this information to drive more revenue for its merchants.

Although Shopify hasn't disclosed the exact number of its US merchants, the company works with millions of merchants worldwide. With the introduction of direct bill payments, Shopify continues to elevate the e-commerce landscape and solidify its reputation as a trailblazer in the industry.