Melio is a leading accounts payable and receivable platform for small and medium businesses. Pulse 2.0 interviewed Melio President Tomer Barel to learn more about the company.
Tomer Barel’s Background
What is Tomer Barel’s background? Barel said:
“I am the President at Melio, having joined in 2022. However, I sat on Melio’s advisory board since the company was founded in 2018.”
“Previously, I worked at Meta and PayPal, where I spearheaded the payments, technology, and innovation initiatives. I was the Vice President and COO of Novi, Meta’s payments unit and digital wallet and spent nine years at PayPal, where I served as Chief Enterprise Services Officer and Chief Risk Officer, leading financial risk management and compliance as well as global operations.”
Responsibilities At Melio
What are your primary responsibilities at the company? Barel shared:
“I spearhead Melio’s strategy execution and scale operations while positioning the company as the leading infrastructure for moving money between businesses and their suppliers. My goal is to create a high-performance workplace while supporting the company’s focus on future growth and profitability.”
Favorite Memory
What has been Barel’s favorite memory working for the company so far? Barel reflected:
“It seems that every day we get closer to effectively scaling business and making our vision a reality. So, my favorite memory is from this morning, when I was looking at what we achieved yesterday. But I guess by the time this is published, many new memories will surpass it.”
Core Products
What are the company’s core products and features? Barel explained:
“Melio is a leading B2B payments technology company that enables small and medium-sized businesses to quickly and seamlessly transfer and receive payments, helping them improve cash flow and workflow. Melio offers accounts payable and receivable as a service through integrations with the platforms of financial institutions, software providers, and marketplaces, transforming how money is transferred between businesses. It is also accessible as a standalone service at Melio.com.”
Challenges Faced
What challenges have Barel and the team faced in building the company? Barel acknowledged:
“As we grow and become more successful and as we introduce many more payment options, the regulatory requirements become increasingly complex. Melio is actively pursuing Money Transmitter Licenses (MTL) in all states and territories where Melio operates, creating more payment opportunities for Melio customers. In July Melio appointed Nicholas Passarelli as Chief Compliance Officer and he is spearheading this effort.”
Evolution Of Melio’s Technology
How has the company’s technology evolved since launching? Barel noted:
“Melio is dedicated to providing solutions that automate the payment process so customers can spend more time running their businesses. We provide value beyond payments with innovative solutions so that business owners can better manage cash flow and workflow. From a standalone service, Melio has developed a platform that can be integrated into the infrastructure of leading institutions interested in providing payment capabilities to their customers. Melio is now launching a new and upgraded set of features that will make our offering more robust and comprehensive than ever before.”
Significant Milestones
What have been some of the company’s most significant milestones? Barel cited:
“Some of our major milestones include partnerships with Fiserv, Capital One and Shopify; launching a mobile app for B2B payments; launching international payments, real-time payments and installment payments; and raising over $650 million in funding.”
Customer Success Stories
When asking Barel about customer success stories, he highlighted:
“Patriot Welding Supply, based in Sebring, Florida, provides machines, helmets, and tools to the welding industry. As a small business without an accounting department, they had to balance the need to become profitable while remaining competitive and providing their customers with the best price possible. At the same time, the owners wanted to devote themselves to helping their customers, not to back-office tasks. With Melio, they were able to pay a bill in less than a minute, much faster than writing and mailing checks and manually adding payments to their ledger. Moreover, Patriot Welding’s vendors receive their payments within three days, twice as fast as it would take to get paid without Melio.”
Revenue
When asking Barel about the company’s funding and revenue details, he revealed:
“We just announced that we secured an additional $150 million in a strategic funding round led by Fiserv, Inc., a leading global provider of payments and financial services technology solutions. Shopify Ventures and Capital One Ventures also participated in the funding round, to help fuel the company’s growth through partnerships. The Series E round follows a ten-fold increase in revenue since the last funding round three years ago, driven by an expansion of Melio’s customer base to include medium-sized businesses and the launch of new partnerships.”
Differentiation From The Competition
What differentiates the company from its competition? Barel affirmed:
“Melio is an innovative payments platform experiencing rapid growth with a vision to revolutionize bill payments for business owners and their accountants. Melio offers a seamless and flexible payment experience, empowering entrepreneurs to maximize their business’s potential. With Melio, business owners are not only able to better manage their cash flow but also save valuable time that would otherwise be spent doing bookkeeping tasks.”
Future Company Goals
What are some of the company’s future company goals? Barel concluded:
“Small businesses account for 99 percent of all U.S. businesses, and we aim to serve as many as possible in the environment that fits their needs most. This can be through their banking platform, e-commerce or payments partner, or directly through Melio, wherever they would enjoy the most complete experience for their business needs. That’s why, in addition to offering our standalone product at Melio.com, Melio has partnered with leading players such as Fiserv, Capital One, and Shopify as we help small businesses operate more efficiently. We are in talks with many more key financial players for future partnerships as we aim to become one of the largest B2B payment companies in the U.S.”
