Payments Efficiency

Can the United States Develop a Standard, Ubiquitous Business to Business (B2B) Electronic Invoice & Processing Platform?

Explore the possibility by reading the U.S. Adoption of Electronic Invoicing: Challenges and Opportunities (PDF) paper release by the Payment, Standards and Outreach Group of the Federal Reserve Bank of Minneapolis.

In keeping with the desired outcome of end-to-end efficiency detailed in the Strategies for Improving the U.S. Payment System (PDF) paper, the main goal of  U.S. Adoption of Electronic Invoicing: Challenges and Opportunities (PDF)  is to consider the development and implementation of a standard, ubiquitous B2B electronic invoice and processing platform in the U.S. similar to those that have been developed in other countries. The paper also highlights:

  • Opportunities for businesses to:
    • Gain efficiencies and reduce costs by more broadly adopting e-invoicing
    • Expand into other areas of the financial supply chain
    • Reduce payment risk and late fees
  • Societal benefits from a reduction in paper invoices
  • Challenges stemming from a lack of:
    • Information technology resources to implement change
    • A compelling individual business case among smaller businesses
    • Common, unified standards or translation software to facilitate change
    • Industry-led coordination, collaboration and leadership to develop a strategy for change

Download the full version of U.S. Adoption of Electronic Invoicing: Challenges and Opportunities (PDF) paper today!


Marc Vanschoonbeek

Don’t understand why US is still looking for what has developed almost PERFECT and is standarizing it with the interledger protocol? Their tech is instant settling and includes rich messaging and invoice possibilty, what more can US want? BTW they ARE in the US

@Marc, Ripple looks good for what it does, but I’m not sure it achieves all the objectives.
While there’s division on it, I agree that pursuing specific tactics in support of cross-border payment improvements such as the adoption of global standards (like ISO 20022) and the direct linking of U.S. payment systems with those located abroad should be among highest priority for standardization. This will likely result in a ripple effect impacting other objectives.

Straight-through-processing or STP, where they have the ability to receive and process B2B transactions from the invoice through payment through reconciliation without manual intervention, is available now for all size businesses. There are multiple solutions on the market, including for SME which is cited multiple times as less likely to use due technical, time investment or ROI. That’s not exactly true. For example, even the smallest businesses have options; Freshbooks claims 10 million SME users for it’s A/R einvoice solution (no A/P). It’s inexpensive and easy to use.

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