Fintech’s Newest Unicorn Bill.com Raises $88 Million in New Funding

In a round led by Franklin Templeton, business payments innovator Bill.com has raised $88 million in new funding. The investment, which also featured participation from Mastercard, Fidelity Canada, FLEETCOR, Tamasek, and others, takes Bill.com’s total funding to $275 million, and gives the company a valuation of more than $1 billion.

“Bill.com is changing how payments are made in the SMB market by defining an industry leading payment and software platform for SMBs,” company founder and CEO René Lacerte said. “Businesses struggle with conventional payment processes which are complex, manual, paper-based and not always secure. Our cloud payment platform is changing all that. We automate payments and back office business processes resulting in significant efficiencies and cost savings.”

In addition to the funding announcement, Bill.com revealed that it has teamed up with fellow Finovate alum Mastercard to offer its virtual cards as part of Bill.com’s automated AP solution for SMEs. The move is part of Bill.com’s effort to further digitize the payment process, leveraging virtual card technology to make funds more readily available to cardholders and to ensure accurate matches between payments and receivables.

Mastercard Small Business Lead for North America Ginger Siegel highlighted the advantages of virtual cards, and praised the collaboration with Bill.com as a way to increase adoption of the technology. “Virtual cards are more secure and provide transparency into cash in-flows and out-flows, which is critical to the growth of all small businesses,” Siegel said. “With the partnership with Bill.com, we can bring the benefits of virtual cards to hundreds of thousands of smaller enterprises in the United States.”

Bill.com demonstrated the Cashview feature of its platform at FinovateSpring 2012. Headquartered in Palo Alto, California, the company made fintech headlines recently when it announced that it was ending wire transfer fees for small businesses using its International Payments technology. Earlier this year, Bill.com announced a partnership with American Express to offer a new solution to streamline vendor payments, Vendor Pay.

Founded in 2006, Bill.com manages $60+ billion in annual payment volume in its three million member network, and includes more than 70 of the top 100 accounting firms in the U.S. among its clients. Bill.com is also partnered with major accounting software providers like QuickBooks and Xero, and is the preferred digital payment solutions provider for CPA.com.

Finovate Alumni News

On Finovate.com

  • TradeIt To Be Acquired by TradingView.
  • Fintech’s Newest Unicorn Bill.com Raises $88 Million in New Funding.

Around the web

  • BehavioSec listed among Enterprise Management Associates’ Top 3 Report Ten Priorities for Enabling Identity Management in 2019.
  • Zions Bancorporation selects D3 Banking’s Digital Banking Platform.
  • Commonwealth Bank & Trust selects Jack Henry to improve efficiency, attract business with modern services.
  • CoverHound to open an East Coast office in Charlotte.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Bill.com Bans Wire Transfer Fees for Small Businesses

Here’s a ban that businesses can really get behind. Digital payments company Bill.com has eliminated wire transfer fees for SMEs that meet three conditions.

  1. Pay Electronically
  2. Pay in Local Currency
  3. Pay with Bill.com’s International Payments solution

Bill.com CMO Yael Zheng highlighted both the convenience and the cost savings available for small businesses that take advantage of International Payments. “Payments can be made and tracked in U.S, dollars, for a better wire transfer rate than most banks, and in more than 24 local currencies with no wire transfer fee and at a competitive exchange rate,” Zheng said.

International Payments was launched last July as a way to help businesses pay international vendors digitally. Bill.com said it has already seen “rapid adoption” of the platform by customers who can now make payments in more than 40 countries. The solution provides automated approval workflows, and helps SMEs save time by syncing with major accounting software platforms such as Quickbooks, Xero, Sage Intacct, and Oracle NetSuite.

“Bill.com has eliminated payments torture from our business life.” co-founder and Operations Manager for The New Stack, Judy Williams said. “We’re growing approximately 25-30% outside the U.S., and the Bill.com International Payments solution enables us to pay our contractors, who are located all over the world, in a timely manner.”

Bill.com demonstrated CashView at FinovateSpring 2012. The solution is a feature of the company’s banking platform, and gives business customers visibility into and management over cash flow, payables, and receivables. More recently, the company partnered with American Express to launch Vendor Pay, a solution that makes it easier for companies to automate their AP processes.

Bill.com finished 2018 with news that it had achieved NACHA certification, ensuring that the company is meeting the corporate governance and risk and compliance obligations for processing ACH payments. Founded in 2006 and headquartered in Palo Alto, California, Bill.com has raised more than $259 million in funding, and includes Temasek Holdings and JP Morgan among its most recent investors. René Lacerte is CEO.

Finovate Alumni News

On Finovate.com

  • Bill.com Bans Wire Transfer Fees for Small Businesses.
  • TransferTo Rebrands as DT One and Thunes.
  • SaaS Banking Specialist Mambu Scores $34 Million in Funding.

Around the web

  • Real Business profiles biometric authentication solution provider – and FinovateEurope Best of Show winner – iProov.
  • Artivest partners with Sudrania Fund Services to provide shadow fund accounting services for its line of mutual fund products.
  • Social investment platform Voleo is featured in the Financial Post.
  • Insuritas teams up with Truliant FCU (+$2 billion in assets) to launch digital insurance agency.
  • Entersekt SVP of North American Operations, Sherif Samy, named to One World Identity’s Top 100 Influencers in Identity roster.
  • Fenergo introduces Rules as a Service (RaaS), a cloud-based regulatory rules offering.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Bill.com Partners with Amex to Offer New AP Solution, Vendor Pay

A strategic partnership between Bill.com and American Express will enable businesses to automate the AP process to make it easier to pay vendors using their American Express Business or Corporate Cards.

The two companies have announced a new solution, Vendor Pay, that streamlines vendor payments, improves working capital and cash conversion cycles, and gives SMEs better data for payment reconciliation. And by relying on single-use virtual account numbers within their current Business or Corporate cards, Vendor Pay also relieves businesses of the burden of having to establish additional card accounts.

“The Bill.com and American Express partnership is a powerful combination of two innovators and leaders in business payments,” Bill.com CEO and founder Rene Lacerte said. “American Express Business and Corporate Card members will now have a central platform for managing digital business payments via Bill.com, with the added benefits of earning the rewards of their card and automating their manual and time-consuming back office processes.”

The partnership will also enable Amex Business and Corporate Card members to make payments via Bill.com’s easy-to-access ACH and check services, which include real-time status updates. Vendor Pay offers both a basic plan with core functionality and no monthly fee for the first user, as well as advanced plans with monthly fees that include features such as bill approval workflows and synchronization with major accounting software platforms.

Bill.com closed out 2018 with news that it had achieved NACHA certification as an ACH third-party sender. The company also partnered with First National Bank of Omaha (FNBO) to provide enhanced digital business payment solutions for its SME customers. Last fall, Bill.com announced the general availability of the automated international business payments solution that it had begun piloting over the summer.

Founded in 2006 and based in Palo Alto, California, Bill.com has raised more than $259 million in funding. The company demonstrated the CashView feature of its AP/AR management platform at FinovateSpring 2012.

A veteran of our developers conference, American Express participated in FinDEVr Silicon Valley in 2015. At the event, Andres Ricaurte, VP of API and Partnerships, and Sathish Muthukrishnan, VP of Engineering, presented The role of B2B payments in the evolving commerce ecosystem, a look at American Express’ role in commercial payments, as well as rise of the API.

American Express reported net income of $2.7 billion in 2017 and revenues of $33.4 billion. The New York City-based global financial services company trades on the New York Stock Exchange under the ticker “AXP,” and has a market capitalization of $89 billion.

Bill.com Achieves NACHA Certification

Business payments company Bill.com received NACHA certification as an ACH third-party sender today. While the certification is voluntary, it indicates that Bill.com is meeting standards, such as corporate governance and risk and compliance obligations, for ACH payment processing.

NACHA Chief Operating Officer and General Counsel Jane Larimer praised Bill.com’s achievement saying, “NACHA certification is a clear indication of Bill.com’s adherence to sound ACH practices and policies.” René Lacerte, founder and CEO of Bill.com added, “it’s important that our clients and partners know that we are committed to the highest quality ACH processing as demonstrated by achieving NACHA Certification.”

Bill.com was founded in 2006 to help businesses manage accounts payables and receivables with online billpay, custom invoicing, document storage, collaboration tools, and more. At FinovateSpring 2012, Lacerte debuted the company’s CashView tools. Since then, Bill.com has grown to process more than $60 billion each year for its network of three million members.

Bill.com is partnered with four of the top 10 largest U.S. banks, 60+ of the top 100 accounting firms, as well as accounting software providers such as Netsuite, Intacct, QuickBooks and Xero. The company has taken in more than $200 million in funding from investors including JP Morgan Chase and Temasek.

Finovate Alumni News

On Finovate.com

  • Plaid Raises $250 Million Series C Round Led by Mary Meeker.
  • Bill.com Achieves NACHA Certification.

Around the web

  • Narrative Science introduces its new language-based augmented analytics product, Lexio, in beta.
  • Currencies Direct taps Ripple’s xCurrent for real-time remittances to India.
  • AlphaPoint to support Stellar Lumens.
  • Motive Partners acquires majority stake in Finantix.
  • Camden National Bank further leverages Jack Henry relationship to support demand for growth, innovation.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

On Finovate.com

  • Interactions Partners with Next Caller for Phone-Based Threat Assessment.
  • BioCatch Brings Behavioral Biometrics to ACI Worldwide.

Around the web

  • Token to support PSD2 compliance and open banking capabilities for U.K.’s thinkmoney.
  • SafeAmericaCU’s switch to AI-powered technology from Bankjoy helps the $433 million asset FI to earn “Best Practices” honors from CU Journal.
  • TransferWise secures £65 million syndicated debt facility with NatWest, JP Morgan, and LHV Bank.
  • iSignthis plans for Australian neobanking license in 2019.
  • PayNearMe’s electronic payment volume grew by more than 25% month-over-month in the past year.
  • Klarna joins Shopify Plus Partner program to power merchants.
  • TrueAccord wins a Healthy Mothers Workplace Award.
  • Passport recognized as one of Charlotte’s fastest growing companies.
  • Launchfire wins gold Brandon Hall Group Excellence in Technology Award.
  • Bill.com selects Comdata as Virtual Credit Card Provider for B2B Payments.
  • TopTracker partners with Payoneer to allows free payments between companies and freelancers.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

On Finovate.com

  • Roostify Powers TD Bank’s Digital Mortgage Experience.

Around the web

  • iQuantifi launches RoboPlanner roboadvisory tool for millennials.
  • Nummo selects MX to power user account aggregation.
  • Signicat digitizes in-store signing of credit agreements for Resurs Bank retail partners.
  • Kony helps PSECU deliver an updated digital banking application to enhance the digital user experience.
  • InComm partners with Japanese pharmacy chain Welcia to launch four mobile barcode payment solutions in its stores.
  • Sezzle adds ShipStation as client.
  • Ocurrency interviews Radoslav Albrecht, Founder & CEO of Bitbond.
  • Insuritas partners with Sound Community Bank to launch bank-owned digital insurance agency platform.
  • Bill.com partners with First National Bank of Omaha (FNBO) to offer enhanced digital business payments solutions.
  • Lighter Capital’s investment in Springboard Retail reaches $1.1 million.
  • Provident Bank chooses Gro Solutions to boost mobile-first user-experience and drive account growth.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

On Finovate.com

  • ID.me Offers Retailers Eligibility Verification for Discount Programs.

Around the web

  • Bill.com announces its automated international business payments solution, piloted in July, is now generally available.
  • Finastra’s former chief digital officer, Balazs Vinnai, joins W.UP as an investor and president.
  • ZeroReveal, the security solution from data-in-use cybersecurity specialist Enveil, earns international Common Criteria security certification.
  • Thailand’s Bank of Ayudhya chooses NICE Actimize to transform its AML compliance capabilities.
  • ACI Worldwide introduces new offerings to enable banks to take advantage of SWIFT’s global payments innovation (gpi) service.
  • Sberbank launches new Seven Minute loan offering for large businesses.
  • Thomson Reuters teams up with augmented intelligence solution provider, Squirro.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.