How Bill.com Monetizes Payments: Why AR/AP Software Should Embed Payments with Astra

In the world of Accounts Receivable (AR) and Accounts Payable (AP) management, one key player stands out: Bill.com. But have you ever wondered how Bill.com monetizes payments? The company has successfully embedded payment solutions into their platform, transforming how AR/AP software can generate revenue and improve cash flow for their users.

For AR/AP software businesses, embedding payments is no longer optional—it’s essential for staying competitive, increasing profitability, and boosting customer retention. Here’s how Bill.com does it and why Astra is the best partner to help your AR/AP platform do the same.

How Bill.com Monetizes Payments

To understand how Bill.com monetizes payments, we can break down their strategy into three core methods:

1. Transaction Fees: Bill.com charges for payments processed through their platform, offering options like standard ACH transfers, same-day payments, and wire transfers. By adding a fee for faster services, Bill.com has created a revenue stream from transactions.
2. Value-Added Services: Beyond basic payments, Bill.com enhances its platform with invoice automation, accounting software integration, and fraud protection. These services drive additional revenue by increasing the value of each transaction.
3. Leveraging Network Effects: Bill.com capitalizes on its large user base to secure favorable rates from financial institutions, increasing their margins on each payment and making the platform more appealing to new customers.

Two Key Payment Solutions Your AR/AP Platform Should Embed

To replicate Bill.com’s success, AR/AP software businesses should offer two critical payment solutions: standard ACH for bill pay and instant payouts for merchants.

1. Standard ACH Payments for Bill Pay:
   ACH is the traditional payment method for transferring funds from customers to businesses. It’s reliable and cost-effective, making it essential for any AR/AP platform. By embedding ACH payments, your software can enable customers to pay bills directly through your platform.
   • Revenue Opportunity: Charging small fees for ACH transactions generates a recurring, scalable revenue stream.
   • Customer Convenience: With ACH payments integrated into your platform, customers have a frictionless, all-in-one solution for managing bill pay.
2. Instant Payouts to Merchants:
   Instant payouts offer businesses faster access to funds compared to traditional ACH. This feature is especially valuable for businesses that rely on steady cash flow, like service providers. Embedding instant payouts creates another revenue opportunity while offering tremendous value to your customers.
   • Revenue Opportunity: You can charge premium fees for instant payments, which customers are often willing to pay to access funds immediately.
   • Improved Cash Flow: Faster payments mean businesses can better manage their operations, increasing their reliance on your platform.

Why AR/AP Software Should Embed Payments

1. Revenue Generation: As Bill.com demonstrates, embedding payments creates a new, reliable revenue stream. Your AR/AP platform can charge transaction fees for every payment processed, leading to consistent revenue growth.
2. Customer Stickiness: Embedding payments makes your platform an indispensable part of your customers’ operations. By offering ACH and instant payments, you enhance their experience, increasing loyalty and reducing churn.
3. Enhanced Functionality: Payments integration adds value by streamlining operations, giving customers a complete, convenient solution to manage AR and AP in one place.
4. Improved Cash Flow: For businesses, having the option of instant payouts is a game-changer. It improves their cash flow, which helps them stay solvent and better manage their operations.

Why Astra is the Best Choice for Embedding Payments

If you’re ready to embed payments into your AR/AP platform, Astra is the ideal partner.

1. Comprehensive Payment Solutions: Astra supports both standard ACH for bill pay and instant payouts, giving you flexibility to cater to a variety of business needs. This dual offering enables you to create two powerful revenue streams.
2. Instant Payments: Astra empowers your platform with real-time, cross-border payments, making it easier for businesses to get paid fast. This level of service adds immense value for your customers and creates a tiered pricing model for faster transactions.
3. Scalability: Astra is built for growth. With nearly $1 billion in annual payments processed across millions of transactions, Astra has the infrastructure and expertise to handle the demands of scaling businesses.
4. Customer Experience: Astra’s frictionless payment solutions enhance your platform’s usability, improving customer satisfaction and retention.

Conclusion

Wondering how Bill.com monetizes payments? It’s all about embedding smart payment solutions. By adding both ACH and instant payout options to their platform, Bill.com has increased their revenue, improved customer loyalty, and enhanced the functionality of their offering.

AR/AP platforms should take note: embedding payments isn’t just a nice-to-have; it’s a must for driving revenue and boosting customer retention. By partnering with Astra, you can leverage powerful payment solutions that are both fast and scalable, helping your business and your customers thrive.