Xero Embeds Bill Payments in Platform [US]
Xero has rolled out online bill payments across all US business plans, embedding Melio's payment processing directly into its accounting platform.
The integration eliminates tool switching. Users can now manage bills, approvals, payments and reconciliation within Xero rather than jumping between banking portals or third-party applications.
Over half of US small businesses spend more than four hours monthly on accounts payable, according to Xero. The company claims businesses using the integrated workflow save around five hours weekly compared to managing payments across multiple tools.
What's included
The feature handles payment scheduling, duplicate detection, and automatic reconciliation via JAX (Xero's AI assistant). Bills are marked as paid and reconciled without manual data entry.
Users can fund payments from bank accounts or credit cards, pay single or batch bills, and schedule payments to align with cash flow. Real-time visibility shows outstanding amounts, payment status and overall spending.
No subscription fees apply. Users pay only transaction fees when processing payments.
Setup deadline
Existing online bill payments customers must configure Melio by 31 March 2026 to maintain service continuity.
Approval workflows and payment delegation capabilities will launch later in 2026. International bill payments are also planned for 2026.
For advisors
Advisors can help clients process payments and reconcile transactions directly in Xero without requiring access to client bank accounts. Payment status and reconciliation remain within the platform.
Setup takes under five minutes from within Xero. The feature is available on all US business plans with no separate Melio subscription required.
Xero also maintains integrations with BILL for firms preferring standalone AP platforms. Users can continue exporting payment files alongside the embedded option.
Andrew Kanzer, managing director of North America for Xero, says the integration reduces manual work and errors whilst freeing advisors to focus on advisory services rather than payment processing.
This is genuinely useful if you're tired of reconciling payments across three different logins (we know you are).