PYMNTS-MonitorEdge-May-2024

Melio Teams With Amazon Business to Streamline Invoicing

BILL Considers $1.95 Billion Purchase of Melio Payments

Small business-focused B2B payments platform Melio integrated with Amazon Business.

By combining with the Amazon Business Reconciliation API, the companies can synchronize Amazon Business invoices in a single payment processing system, thus helping business owners save time, according to a Tuesday (Sept. 10) news release.

“Small business owners often spend more time on admin tasks than on driving the growth of their business,” the release said. “Hence, automating these tasks should become a priority to increase productivity and efficiency. This is especially relevant in the accounts payable space where any delayed invoice payment can negatively affect relationships with suppliers and contractors.”

Via the partnership, small- to medium-sized business (SMB) owners have a one-stop invoice payments solution, per the release. Amazon Business Pay by Invoice customers in the United States can pay all their Amazon Business invoices — and other bills — through Melio.

Many SMBs wrestle with late payments. According to the PYMNTS Intelligence report “End the Wait: SMBs and the Protracted Challenge of Delayed Payments,” more than a quarter of SMBs in the United Kingdom face up to 20,000 pounds (about $26,000) in overdue invoices, with 36% of payments arriving late each month.

“This issue is also prevalent in North America, where less than one-third of SMBs have fully integrated payments into their management software,” PYMNTS wrote last week. “Ineffective cash flow management, cited by 60% of SMBs as a major challenge, exacerbates the risk of business failure.”

In the face of manual processing constraints, many SMBs are turning to FinTech solutions. However, despite a projected 50% surge in payment volumes and a 46% increase in invoicing over the next three years, many SMBs remain bogged down by outdated systems.

“High costs and perceived complexity deter more than one-third from adopting automated solutions,” PYMNTS wrote. “But 64% are exploring tailored financial services through integrated software platforms. The shift toward cloud-based services is notable, with more than 80% of SMBs seeking these solutions to overcome inefficiencies.”

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PYMNTS-MonitorEdge-May-2024