Xero Acquires B2B Payments Platform Melio for $2.5 Billion

Xero, a leading cloud-based accounting software provider, acquired Melio, a B2B payments platform, for approximately $2.5 billion in June 2025. Melio enables small businesses to manage accounts payable and receivable digitally, including paying vendors via bank transfer or card. By integrating Melio's payment infrastructure directly into its accounting platform, Xero gains embedded payment capabilities that could streamline workflows for its millions of SME customers globally.

The $2.5 billion price tag makes this one of the largest fintech M&A deals of June 2025. The acquisition allows Xero to capture payment revenue from transactions already flowing through its accounting ledger. For Melio, the deal provides access to Xero's extensive global SME customer base.

The transaction underscores the growing trend of software platforms embedding financial services to deepen customer engagement and monetize existing relationships.