Global small business platform Xero unveiled a series of major product updates across its payment, payroll, and bookkeeping suites at Xerocon US. Underpinned by its “3×3” strategy, the expansion introduces Xero Payroll (powered by Gusto) alongside Melio Expense Management, uniting core accounting, payroll, payments, and tax workflows into a single connected financial ecosystem for small businesses and accounting advisors.
The announcements also highlighted new automated capabilities within Xero’s agentic AI framework, JAX. Designed to minimize administrative manual labor, these innovations deliver real-time financial tracking and actionable data insights to Xero’s global base of more than 5 million subscribers.
Embedded Payroll Built for Small Business Cash Flow
Xero Payroll, powered by Gusto, integrates directly into the core Xero interface, allowing business owners and financial advisors to oversee payroll, vendor payments, and daily cash flow from a single dashboard.
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The embedded solution offers:
Unlimited Payroll Processing: Supports regular pay runs alongside direct deposit distributions for both full-time employees and independent contractors.
Automated Tax Compliance: Calculates, files, and remits federal, state, and local payroll taxes automatically to maintain compliance.
Integrated Benefits & Self-Service: Manages employee benefit deductions while providing staff access to self-service portals for pay stubs and tax documentation.
“Small businesses shouldn’t have to stitch together multiple tools to manage their finances, and their accountants shouldn’t have to untangle multiple systems to see the full picture,” said Matan Bar, US CEO of Xero. “Today’s announcements demonstrate our continued investment in the US market, helping our customers to get more done in one fully unified, AI-powered financial management platform.”
Streamlining Expense Management and Client Communications via Melio
After Xero acquired Melio in 2025, it extended its B2B payment platform by incorporating Melio Expense Management. As an accounting-agnostic application, it records and categorizes card purchases instantly without necessitating that firms change their credit cards or forgo the rewards program they enjoy. It records the transactions automatically and matches them to categories before feeding them into the general ledger.
Additionally, Melio introduced Casper, an AI-powered client management tool built for accounting firms. Operating across all major ledgers, Casper flags missing documentation, automates client outreach for receipts, and streamlines month-end closing tasks while keeping human accountants in control.
Expanding B2B Payment Infrastructure and Developer APIs
To accelerate payout speed, Melio expanded its 24/7/365 instant payment capabilities, allowing businesses to execute transfers during weekends and holidays. Concurrently, the company debuted the Melio API in closed beta a B2B payout architecture giving developers direct access to ACH, real-time payments, virtual cards, wire transfers, and paper checks without requiring payees to complete separate platform onboarding.