Market penetration of e-invoicing in Europe

European market growth for electronic and automated processes is strong and sustainable. Organizations in the public and private sector are keen to reduce costs and to improve their Cash Management. Combined with the rich solution offering, these benefits are sure to result in further strong market growth for electronic invoicing and related topics. Bruno Koch States: “With an estimated volume growth of 35% for 2011, E-Invoicing is currently one of very few growing markets”.

This article is part of the co-author series of the EEI Platform. It was originally distributed by Bruno Koch founder and owner of Billentis. Billentis is an expert on EXPP. 

Number of users increasing sharply
Around 53,700 new E-Invoicing users are expected daily this year. Large suppliers push consumers to accept electronic invoices, or to receive penalty, e.g. charging EUR 2.50 per paper invoice. Companies are pushed by their trading parties to send or receive electronic invoices.

Legal changes, with possibly a 3rd option, resulting in market confusion as long as guidelines for “process control” are not clearly communicated by governments.

Market Figures Europe E-invoicing, E-billing

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Channels Used for Electronic Invoices
The processed B2B volume is expected to reach 1,735 million E-Invoices this year (corresponding to 11.6% of all European B2B invoices). The B2C volume is estimated to reach 1,400 million E-Invoices (9.3% penetration).

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Service Providers
Around 60 new operators are expected to appear this year in Europe. These are mainly providers with a focus on SME and providers from the financial industry segment. Although most providers remain focused on local markets, an increasing number are expanding their geographical reach, around 60 of them with VAT compliance for 30 or more countries. Merger & Acquisition deals are expected to rise this year from 14 (2010) 25. Major consolidation is expected in 2012/2013 when the market penetration of E-invoicing surpasses 15%.

Increasingly, e-invoicing providers are internationalising and diversifying their product portfolio, allowing them to attract customer from a multitude of countries. This also sparks the increasing co-operation between providers which creates interoperability between Platforms.

Some actions supported and/or steered by public sector
The European Commission aim to simplify and liberalise the legislation in member states and push interoperability and standards. They intend to set up a Multi-Stakeholder Forum on Electronic Invoicing

Other efforts are:

• CEN WS/INV3: Efforts in the areas standards, compliance, implementation and business processes
• PEPPOL: e-Procurement project of various EU countries
• Revision of Directive on e-signatures

European countries implement the amendments of the VAT Directive into national
Legislation and remove or reduce barriers for electronic archiving.