Pagero at a glance
Pagero develops and markets Pagero Online, a cloud-based platform that enables customers to send, receive and handle documents electronically within the purchase-to-pay, order-to-cash and logistics-to-pay processes. Pagero also develops a suite of supporting applications to help customers automate their processes and ensure accurately and locally compliant documents, with minimum manual handling. As an open and interoperable multi-tenant cloud platform, Pagero Online is independent of ERP systems and is suitable for companies of all sizes and within all industries – as long as they send or receive business documents.
Key developments in 2020
Despite the impact of Covid-19, Pagero's top-linegrowth increased by 12% and the customer base grew by +30% in 2020: The number of companies connected to Pagero's network grew to c.50k during 2020, with more premium brands also starting to join. Pagero now has customers in 135 countries. Pagero increased its international footprint through industry partnerships as well as product development and local establishments in new countries to ensure full compliance in 60+ markets worldwide. Furthermore, the company intensified its product development and added 2 700 new features during 2020 without any interruption to the production environment.
The challenges we face
Compliance, efficiency and waste reduction are increasingly important business considerations. A lack of standardization for business communications and the existence of multiple, closed business networks has led to many trading partners being unable to communicate electronically. Consequently, businesses are struggling to optimize the use of their resources while meeting increasingly stringent regulations and reducing paper waste.
What is the outcome?
Pagero's vision is to build the largest, open business network which will enable more governments and businesses to achieve 100% digital document flows and to comply with tax and regulatory requirements. The product helps reduce the VAT gap and increases tax recovery and thus benefits governments worldwide. Moreover, it improves efficiency by automating global format and standards translations and by eliminating errors and busywork in important sectors, e.g. the healthcare and the public sector, where Pagero has a large customer base. This also helps reduce the environmental footprint by reducing companies' use of paper.
Who are the stakeholders?
Pagero's services allow businesses to meet changing local regulatory and industry requirements, meaning governments from around the world benefit from Pagero's services by increasing VAT collection. Pagero’s clients experience efficiency gains, and so do their suppliers who also interact with the network, even if they are not themselves customers of Pagero. Moreover, Pagero benefits the environment by reducing the amount of paper used and ensures accurate documents with minimum manual handling.
How big is the effect, and does it last?
In 2018, EUR 140bn of VAT revenue is estimated to have been lost due to non- compliance across the EU1 and worldwide this number is estimated to be closer to EUR 500bn2. Furthermore, businesses can achieve a 62% accounts payable cost reduction, reduce their e-document error, and better meet regulatory requirements through e-documents3. Through Pagero's 24 local offices across four continents and network of millions of businesses, Pagero helps both governments close the VAT gap and businesses increase productivity, in developed and developing markets alike. From an environmental perspective, Pagero saved 174k tress by turning its customers' documents digital.
If Pagero didn’t exist…
Without Pagero's services, managing e-document compliance regulations per country would be a cumbersome process for businesses worldwide. Pagero currently offers compliance services in over 130 countries, allowing companies to fulfill legal and tax requirements globally and without disruption. There are alternative solutions to Pagero, but arguably none with the same ease of use and price/performance ratio. Moreover, Pagero’s large network gives it an advantage against other players and creates low barriers to entry for Pagero.
Impact risk: what can go wrong?
Data protection and cybersecurity are significant issues in the industry. Being a driver of the digital transition also means facing adoption risk from resistance to change within organizations. Risks also include major technology and competitive disruption, but this is regarded as a relatively small risk as Pagero’s network of businesses would be hard for any one competitor to replicate. In order to remain at the forefront with regards to technology, Pagero expanded their R&D team and invested 180 000+ hours into developing their platform and product offering during 2020. Moreover, the company was able to maintain zero downtime and no security breaches across the Pagero Network throughout 2020.