Shopify is partnering with B2B startup Melio to offer bill pay on its platform, essentially allowing merchants to manage their businesses on their website, per TechCrunch.
According to Shruti Patel, Head of Merchant Services at Shopify, customers have been asking for bill pay for some time now.
In an interview with TechCrunch, Patel said: “We have been on the fintech journey since we introduced payments back in the day, powered by Stripe. That gave us tons of insight on our payments data. And then we came out and offered Shopify Capital in 2016, which was designed to meet our merchants’ micro and macro lending needs. And then last year we introduced what we call Shopify Balance, which was almost like a money management tool.”
Through this partnership, Shopify is making it easier for merchants to pay their bills by offering them different options such as bank transfers, credit or debit cards, and even using their own Shopify Balance. Merchants can schedule payments and may receive their money up to four days earlier than with a traditional bank. The bill pay feature is free for merchants, but there may be small fees associated with certain payment methods. By offering this service, Shopify is aiming to help smaller merchants who struggle with expensive subscription plans gain insights into their spending habits.
What’s more, this partnership is an example of how e-commerce, tech, and fintech companies are converging in their product offerings.
Many e-commerce companies have started offering payment processing services to their customers, allowing them to complete transactions without leaving the platform. This trend is exemplified by companies such as PayPal and Stripe, which offer payment processing services to a wide range of businesses.
In addition to payment processing, e-commerce companies are also offering other financial services such as BNPL loans, credit lines, and insurance. For example, Shopify Capital provides loans to eligible merchants based on their sales history and performance on the platform.
We’re also seeing the reverse of this. Fintech companies are expanding their product offerings to include e-commerce services. Square, a company that originally focused on mobile payments, has expanded into e-commerce with its Square Online Store platform, allowing merchants to sell online and in-person using the same platform. And tech companies, such as Amazon are expanding into financial services by offering credit cards and loans to customers, in addition to their e-commerce platform.
