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.