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The biggest of them all

We read that PayPal is moving into e-invoicing. Natural step for anyone who wants to stay in the payments business = keep the funding and profitability transaction accounts offer. Some banks have not yet seen the need to make the choice - keep the profitable and stable funding intact or not.

In the same news we also read:

"Separately, the US Treasury has signalled plans to switch all supplier payments to e-invoicing by the end of fiscal 2012, in a move the agency says will halve processing costs by $7 million annually.

If adopted government-wide, it could eventually save up to $450 million annually through lower staffing costs, according to official estimates."

This is really important and raises the question if there still are countries where wasting tax payers' money by sticking to inefficient and environmentally unfriendly practices will be accepted beyond 2012. Please let us know..

The US saving potential has probably not been taken to all the levels involved as the saving is rather moderate. To take the Finnish example (similar and higher figures from several other countries): Businesses can save 2,8 bn (EU-level equivalent = 196bn), the state sector 150m (EU eq = 10,5bn), the municipal sector 150m (EU eq 10,5bn). Some money.. for tax payers - and liberating increasingly scarce workforce for productive, better paid and more interesting meaningful work.

The list of progressive countries with public sector deadlines (as far I know of) include:

- Denmark (by law as of 1.2.2005) - scanning still part of solution?

- Singapore (1.5.2008) - would be interesting to hear about penetration rate

- Italy (by law 1.7.2008 - deadline later pushed forward) 

- Spain (1.11.2009)

- Sweden (1.7.2009) - rather mild so far..(many municipalities have been progressive)

- Finland (31.12.2009)  - also scanning will be discontinued soon. Some 30 municipalities and most large companies have established deadlines. Several have stopped scanning and return non-structured invoices. E-invoice penetration rate now estimated to be 35% and exceed 40% by yearend.

- Brazil (2010)

- Greece (31.12.2010)

- Mexico

- Norway (2012)

Countries with deadline discussions in active phase (that I have heard of)

- Canada 

- Luxembourg

- Russia

Please fill in....

The municipal sector is in some cases included (eg Denmark) and is very important as they can bring the local micro enterprises over the hurdles and get the CUT 50 progress started.

CUT 50: http://www.finextra.com/community/Fullblog.aspx?blogid=5538

 

 

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Bo Harald

Bo Harald

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Transmeri, Demos, Real Time Economy Program,MyData

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This post is from a series of posts in the group:

Innovation in Financial Services

A discussion of trends in innovation management within financial institutions, and the key processes, technology and cultural shifts driving innovation.


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