Just 25% of bills issued in the US are electronic but a leading e-invoicing company has announced investment from five US banks, signalling an industry-wide readiness to embrace e-billing.

Transactis, the digital invoicing and payments services provider of white-label solutions for financial institutions, has announced that it has signed deals with five of the US's biggest commercial banks (Capital One, Fifth Third, PNC, TD, and Wells Fargo) as well as Safeguard. The six entities have invested a total of $30 million in Transactis.

Electronic invoices or bills only account for a quarter of the 25 billion bills produced each year in the US. The greater involvement of the five banks in Transactis signals that the US is ready to move its invoicing and billing systems to electronic. This will naturally bring greater efficiencies for the accounts payable and treasury departments.

Major transformation in US billing and payments

The deal was announced in a statement from Transactis, which referred to the rapidly changing payments industry and the widespread reliance on paper invoicing in back offices across the country. A move to electronic invoices will enable businesses to save time and resources.

“There is a major transformation taking place in billing and payments, and Transactis is paving the way,” said Stephen T. Zarrilli, president and CEO of Safeguard and board member at Transactis.