PYMNTS-MonitorEdge-May-2024

Bill.com Lands $100M

JPMorgan Chase & Co and Temasek Holdings are reportedly the lead investors in a funding round that raised $100 million for Bill.com.

According to a report in Reuters, citing Bill.com — a firm which helps businesses make digital payments — existing investors also participated in the round. The company plans to use the proceeds to expand its distribution, Reuters reported.  

In September, Bill.com announced it had inked a partnership with JPMorgan Chase to help business clients make and receive digital payments. The company is among a swath of young companies trying to bring technology to the financial sector, according to Reuters — in this case, particularly when it comes to making payments. While consumers have been embracing digital payments, particularly outside of the U.S., business to business (B2B) payments have been slow to catch on to the digital payment method wave in America.

Citing the Association for Financial Professionals (AFP), Reuters reported more than 50 percent of B2B payments made by companies were completed via paper check last year. The technology of Bill.com can be integrated into banks’ websites as well as into accounting software to help facilitate easier payment transactions, according to the article.

Bill.com currently has approximately 100,000 customers — approximately 1 percent of all business in the U.S. — and aims to expand its footprint with the new investments. René Lacerte, chief executive officer and founder of Bill.com, told Reuters the company will also use some of the funding the enhance its product.  

“Examples would be international payments,” Lacerte said in the report.

According to Lacerte, businesses should have the same digital payments experience that consumers have. Reuters noted Bill.com processes approximately $50 billion in payments each year. The executive explained the investment on the part of JPMorgan underscores how traditional banks are eyeing FinTechs to embrace technology.

“They want to leverage the capabilities of FinTechs companies,” Lacerte explained.

PYMNTS-MonitorEdge-May-2024