The market for dematerialization of invoices - France

1.2 The dematerialization of invoices is progressing rapidly around the world

According to a study by Zion Market Research, the global e-invoicing market was worth $*.** billion in ****. This report expects a sharp increase in revenue generated by e-invoicing solutions, with an expected CAGR of **.*% per year between **** and ****, reaching approximately $**.** billion by ****.

E-Invoicing Market Size Global, ****-****, Billion $ Source: ****

This very strong expected growth is explained by the still relatively low number of dematerialized invoices: according to Dématérialiser, out of *** billion invoices issued worldwide in ****, only ** billion are currently managed electronically, i.e. *% of invoices are dematerialized. However, the number of dematerialized invoices is expected to increase significantly, with an annual growth of **% expected in Europe, **% in North America and **% in Asia.

The transactions that are most often the subject of electronic invoices are business-to-business transactions (***) where more than **% of invoices between companies are dematerialized. Western European countries, with the exception of Spain, Portugal and Italy, have a dematerialization rate of more than **%. [***]

Invoice dematerialization rate

Europe, ****, %

Source: ****

1.3 The dematerialization market in France is growing

Estimated turnover of the French market

In ****, ** million electronic invoices were exchanged in France, representing *.*% of the invoices exchanged that year. The adoption rate of e-invoice solutions (***), reveals that the exchange of e-invoices is however not systematic. [***]

The number of electronic invoices sent to local authorities and the State, now centralized on the Chorusplatform, rose from **.* million in **** to **.* million in ****, an increase of ***%. [***]

Since we do not have a figure for the French market, we can use the average cost of an electronic invoice (***). This allows us to estimate the size of the market at between ** and ** million euros for ****. Taking into account the growth in the number of dematerialized invoices, which is **% per year, the market for dematerialized invoices can be estimated at between ** and ** million euros in ****.

A market that will soon concern all companies

According to Les Echos, the invoice dematerialization market still has good growth potential, as **% of French companies digitalized less than half of their invoices in ****

only **% of companies have still not adopted a dematerialization solution for their invoices in ****

Do you have a project to equip your invoices with dematerialization? France, ****, % Source: ****

Companies should therefore be equipped in over **% of cases within three ...

2.1 Bills and individuals

According to an Opinion Way survey, "The French and bills" of late ****, between **% and **% of French people personally pay their bills for "current expenses" (***), without going through an intermediary.

Personal payment of current housing expenses France, ****, % Source: ****

The French generally pay their bills via an automated direct debit each month. Internet and telephone bills are the most paid by direct debit at **% and **% respectively. Next come credit repayments, electricity bills and taxes.

Payment method for fixed expenses France, ****, in % Source: ****

2.2 Invoices and companies

The majority of companies in France have already implemented dematerialization solutions for invoices (***). However, most of these companies only have one solution. This implementation is generally old since it is more than * years old in **% of the companies concerned.

Use of dematerialization solutions for invoices in companies France, ****, % Source: ****

This equipment is generally installed in order to meet customer requirements (***) and to reduce costs related to invoice production. [***] Most of these companies call on external suppliers to set up invoice dematerialization.

Mode of use of invoice dematerialization solutions in companies France, ****, % Source: ****

Conversely, companies may be reluctant to install dematerialization systems because it is not one of their priorities (***).

most companies use EDI to dematerialize their invoices

Mode of use of dematerialization solutions for invoices in companies France, ****, % Source: ****

Even so, more than **% of companies have dematerialized more than **% of their invoices (***) within three years.

2.3 Bills and local authorities

According to the dematerialization barometer conducted by the JVS group, the employees of town halls in French municipalities of less than **,*** inhabitants see the rise of dematerialization as an opportunity. The three main benefits they perceive are time savings (***).[***]

Perception of dematerialization in French municipalities with fewer than **,*** inhabitants France, ****, % Source: ****

Despite the obvious opportunities brought by dematerialization, many difficulties are encountered daily by customers and users, illustrated by those encountered by town halls in France. Among them, the lack of time to set up the dematerialization process, the lack of information and the low internet speed represent the main obstacles to the dematerialization of processes in the municipalities.

Difficulties encountered by local authorities in the face of dematerialization France, ****, % Source: ****

The public sector represents an important demand segment for invoice dematerialization companies. Indeed, companies are obliged, regardless of their size, to send electronic invoices to local authorities when carrying out public contracts. Chorus Pro is a platform that was created by the State to facilitate the transfer of invoices to local authorities for example.

2.4 Towards dematerialization beyond invoices

Bruno Koch, analyst at Billentis, explains that dematerialization should become widespread in the years to come. [***] On the one hand, this process could be encouraged by the authorities, via restrictive legislation, or by a will of the companies to simplify their internal management. He expects in particular the dematerialization of :

Purchase orders Customer orders Acknowledgments of receipts Confirmations Resources and catalogs

The eDocGroup company already offers this type of solution, explaining that the dematerialization of the purchasing process favors both buyers (***).

3.1 Who are the players in the dematerialization of invoices market in France?

According to data from SerdaLab, covering the year ****, there are * main players in the market :

Bill management and intermediation service providers between the payer and the receiver, ISPs and integrators, Electronic invoice management software publishers (***).

The other, less important players are cloud-based dematerialization platforms, consulting companies, trusted third parties and software distributors.

Although this nomenclature covers the dematerialization market in general, it highlights the important role played by consulting and service companies. For example, companies and governments do not simply buy a software solution, but often use companies to train their staff, deploy the solution and provide maintenance.

Share of each segment in the dematerialization market France, ****, % Source: ****

Generix Tungsten Agena **** Cegedim Edicom TrustWeaver IBM EDT  

3.2 Activities related to electronic invoicing

Invoice dematerialization software developed by software distribution companies is usually accompanied by several ancillary services that enable the publisher to secure future revenues. The revenues of Generix Group, one of the largest publishers of invoice dematerialization software, gives an insight into the distribution of revenues of an invoice dematerialization company.

Generix Group's revenue breakdown by business World, ****, % Source: ****

The sale of SaaS (***), consulting services and maintenance services each account for about a third of the company's revenue. This shows that companies rely just as much on software distribution as they do on maintenance after the sale.

4.1 The dematerialization of invoices takes several forms

According to CCM there are two types of electronic invoices.

The "structured" invoices which are issued according to the standards of electronic data interchange recognized by the State. They have several formats and correspond to the EDI standard (***), XML and other formats such as the IDoc of SAP. Unstructured" invoices sent in unmodifiable electronic format (***) which do not have a content that can be fully interpreted by computer.

The software offered by the publishers allows in particular:

The sending of electronic invoices between two economic actors, as well as their conversion to the format chosen by the supplier and the customer. The electronic signature of invoices, which ensures the integrity of electronically transmitted documents. The archiving and conservation of invoices, since companies are obliged to keep their invoices for ** years, publishers can offer storage services or electronic safes for duplicates.

4.2 The advantages of dematerializing invoices

According to CCM the dematerialization of invoices has many advantages:

The dematerialization of invoices generates financial gains for the company with a reduction in paper costs and processing of shipments: while a paper invoice costs an average of €**, a dematerialized invoice costs about €*. This represents a financial gain of nearly **€ per invoice. The dematerialization of the invoices causes a gain in productivity by calling upon several trusted third parties for the sending, the certification and the archiving. Outsourcing avoids mobilizing staff for basic tasks without added value. Electronic archiving of invoices facilitates the management and collection of invoices and allows data to be easily retrieved upon request from customers or tax authorities. Electronic invoices can be integrated with invoicing software such as SAP.

E-invoicing software is also generally sold at prices that are affordable for businesses, although these can vary greatly.

Source: ****

5.1 An important current regulation

Software publishers and economic actors using electronic invoices must respect a certain number of standards set by law. The legislation has indeed greatly evolved over the last few years, for all companies, whatever their size. They are no longer able to refuse electronic invoices since ****, for example. [***]

E-invoices must comply with tax regulations, including the amount of VAT, the amount of the order and the name of the customer. The company must choose one of the following three solutions:

The electronic signature of unstructured documents (***) must be signed electronically, a procedure that must be performed by a person who has received a certificate in the company. EDI (***) allows the exchange of accounting data recorded in a specific format. The identity of the supplier and the buyer is directly guaranteed and these data constitute a proof in the eyes of the tax authorities. The implementation of a reliable audit, which is supposed to control the invoice at each stage of its processing.

Invoices must also be archived by both parties. An adequate system must allow to store the invoices during this period. This period is * years for the administration, but it is ** years for the accounting law. [***]

5.2 Electronic invoicing for public contracts and between companies

The Le Coin des Entrepreneurs website has drawn up a typology of present and future obligations for companies and local authorities regarding electronic invoicing.

Public contracts

The order of June **, **** gives a set of rules for electronic invoices sent in the context of a public contract. Electronic invoicing is already mandatory for companies with a turnover of more than €* million or a workforce of more than ** people, and that send it to a public entity (***). This obligation has been extended to all companies since January *, ****.

Business to Business

The regulation for business-to-business electronic invoicing is somewhat different. It concerns the obligation for companies to accept electronic invoices (***). All companies with a turnover of more than * million euros or with more than ** employees must already accept electronic invoices. This obligation has been extended to all companies since January *, ****.

In order to facilitate the exchange of electronic invoices, the State has set up a platform: Chorus Pro.

5.3 Electronic invoices can replace paper invoices

Signexpert details the new rules that recently apply to electronic invoices. With the new article **** of the Code Civil, reliable copies of invoices have the same evidentiary value as the original invoices. Several conditions must be respected in order to ensure this reliability:

The transfer between paper and electronic media must be carried out under conditions that guarantee identical reproduction. The archiving of the documents can be digital, as long as an Internet organization allows to ensure their availability, their legibility and their integrity. The documents must have a server stamp and an electronic signature based on a compliant certificate and a digital fingerprint.

In order to be compliant, the digitization must comply with the NF Z**-*** standard, which details the conditions for compliant digitization. [***]

6.1 Segmentation of market players

• Cegedim
• Ciril Group
• Docaposte
• Iron Mountain
• Luminess Jouve
• CEGID
• Everial
• SER Group
• Yooz
• Esker
• Idnomic Keynectis
• Itesoft
• Xelians Archiveco
• Asterion (Exela)
• Asterion (Exela)