JPMorgan Chase Exits the World of eInvoicing

webadmin 18 Oct 2013

by Henry Ijams, Managing Director, PayStream Advisors

Chase recently announced their plans to get out of the electronic invoice business. What does JP Morgan Chase/Xign’s Order-to-Pay decision mean for users of electronic invoicing platforms?

For current customers, it means they have to rapidly find a competent replacement provider in today’s confusing electronic invoicing and payment marketplace. PayStream Advisors also believes it provides customers with an opportunity to improve their vendor collaboration program, beyond just invoicing and payment.   It means dramatically boosting vendor engagement and adoption.  Let’s face it; Chase was not the greatest at supplier on boarding, especially over the past several years when they weren’t taking any new customers.

With Chase out of the eInvoicing picture, there is great opportunity with providers like Ariba, Taulia, OB10, Basware, and ADP.  These providers have aggressive supplier onboarding programs that have proven success in the number of suppliers currently enrolled in their supplier networks.  We expect these numbers to continue to grow as eInvoicing becomes even more prevalent

eInvoicing – What’s Next?

The current provider landscape is almost certain to change in the coming years. The electronic invoice marketplace is saturated with providers competing for $300 million in U.S. business that is growing at 12 percent per year.

PayStream estimates that a combined 850,000 U.S. suppliers are registered in networks and are actively providing electronic invoices. The problem: There are 10 million U.S. businesses engaging in B2B commerce. Electronic invoicing networks such as Ariba, Taulia, ADP, Basware, iPayables, Direct Commerce, Hubwoo, Transcepta, Corcentric, and Direct Insight have done a good job at onboarding suppliers.  However, they have traditionally focused on the largest suppliers.

Emerging providers such as TradeShift, Nipendo, AvidXchange, Coupa, and Invoiceware have also witnessed success with supplier recruitment and are now starting to target smaller suppliers.   Niche payment networks like BottomLine Technologies Paymode-X, U.S. Bank, PowerTrack/Syncada and Sungard whose solutions are primarily focused on payments, have also been successful recruiting suppliers to their network.

The interesting dilemma for someone searching for a new eInvoice solution to fill the J.P. Morgan void is how to migrate all their enrolled suppliers to a new platform. It also raises the question, what’s the value of a network when J.P. Morgan Chase Order-to-Pay was largely unsuccessful in signing up medium and smaller suppliers?

Here are some critical questions that need to be addressed before you consider a new solution.

  • Do you need to get all of your services from one provider?
  • Should you rethink your enrollment structure?
  • Are supplier fees going to be a hindrance to the growth of your platform?
  • Is a many-to-many network really that valuable for you?
  • Do you have global expansion aspirations?
  • What is the new, emerging, dynamic discount management opportunity?
  • Do single use accounts really add value to your platform?
  • Would ACH with dynamic discounting be a better opportunity?
  • How sophisticated is the provider’s onboarding?
  • Can the solution provider really help you grow your vendor base?
  • Should you be willing to pay gain share on your discount program?

PayStream has developed an electronic invoice solution provider assessment and RFP program to assist J.P. Morgan clients with their strategy decision and to provide an orderly transition to a new provider.

Here are the core program elements:

  • Understand objectives, develop solutions strategy and five-year vendor adoption goals.
  • Develop solution requirements document for electronic invoicing solution.
  • Develop, issue and score a request for proposal (RFP) with a selected list of relevant and capable electronic invoice providers.
  • Create a competitive environment for vendor review, capability discovery, and provider risk assessment.
  • Guide steering committee on optimal decision for long-term success.

PayStream’s Solution Radar

PayStream’s Solution Radar Scores Electronic Invoice and Purchase to Pay Solution Providers based on analysts 68 point requirements capabilities.

PayStream's Solution Radar

Contact to get the transition help you need.

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