Under the partnership, invoices sent by PDF will incorporate a PayPal button which the customer just clicks to arrange payment.

The payments can then be made by credit and debit cards, bank transfers or PayPal balance, meaning customers don't have to wait for cheques to clear.

OB10 says the partnership - initially for the UK market only - will help businesses streamline invoicing and payment process, improving efficiency and transparency within the financial supply chain.

Cameron McLean, general manager, merchant services, PayPal, says: "The PayPal and the OB10 eBilling product will provide businesses with the opportunity to optimise their working capital cycle - an incredibly powerful proposition in today's economic climate."

Last year the European Commission (EC) set up a steering committee to oversee the establishment of a common invoicing framework that would allow businesses across the region to send invoices and receive corresponding payments electronically.

According to a report produced by an "informal task force" on e-invoicing, the introduction of the European electronic invoicing (EII) network could reduce supply chain costs by EUR243 billion across Europe and help to streamline business processes and drive innovation.

Attention has also turned to the environmental costs of paper-based invoicing. According to stats produced by the Euro Banking Association, a one per cent increase in the adoption of e-invoicing in Europe would save 800,000 trees annually.

Finextra is conducting a survey on business attitudes to e-invoicing as part of our SibosOnline Green Zone initiative. For each quiz taken, we will offset one tonne of carbon - equating to one return flight from New York to London - through our association with The Carbon Neutral Company and enter all participant names into a prize draw for a top-of-the-range mountain bike.