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-tocash and logistics-to-pay processes. Pagero also develops a suite of supporting applications to help customers automate their processes and ensure accurate and locally compliant documents, with minimum manual handling. As a multi-tenant 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 2019
In 2019, top line growth increased by 17% and the customer base grew by 42%. The number of companies connected to Pagero's network grew by 80% compared to 2018. Pagero increased its international footprint through local establishments in three new countries, as well as through partnerships and product development to ensure full compliance in 60+ markets worldwide. Furthermore, the company has increased its reach through strategic partnerships with global players such as Deloitte and Thomson Reuters.
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 eliminating errors and busywork in important sectors (Pagero has a large customer base within e.g. healthcare and the public sector) and helps reduce 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. 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 2017, EUR 137bn of VAT revenue is estimated to have been lost due to non-compliance across the EU and worldwide this number is estimated to be closer to EUR 500bn. Furthermore, businesses can achieve a 62% accounts payable cost reduction, reduce their e-document error and better meet regulatory requirements through e-documents. Through Pagero's 20+ local offices across four continents and network of 4.5 million businesses, Pagero helps both governments close the VAT gap and businesses increase productivity, in developed and developing markets alike. From an environment perspective, Pagero processed 53 million compliant documents in 2019, which is equivalent to saving 475 hectares of trees.
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 100 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?
Risks 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 120,000+ hours into developing their platform and product offering during 2019. Moreover, the company were able to maintain zero downtime and no security breaches across the Pagero Network throughout 2019. Another risk includes regulatory bodies not supporting the transition to digital document workflows which could deaccelerate market growth.