Digital payments have transformed the consumer landscape, yet B2B transactions continue to lag behind. While the shift to digital accelerated during the COVID-19 pandemic, small and midsize businesses (SMBs) still grapple with outdated, inefficient financial processes. That’s where BILL, a B2B financial operations platform, steps in. With a mission to streamline accounts payable, receivables, and expense management, BILL is revolutionizing how SMBs handle their finances.
In a conversation with McKinsey, René Lacerte, CEO and founder of BILL, shared insights on the company’s journey, the challenges of B2B payments, and the future of financial automation.
The Complexity of B2B Payments
Unlike consumer payments, B2B transactions involve a complex decision-making process. Businesses must evaluate invoices, decide on payment timelines, and manage cash flow—all before a transaction even occurs. This complexity is what makes automation so valuable.
BILL aims to simplify financial operations by automating these decision points. Instead of manually tracking approvals, payment schedules, and reconciliation, businesses can rely on BILL’s platform to integrate seamlessly with their financial workflows. This not only reduces time spent on financial admin but also enhances decision-making with real-time insights.
“We built BILL to take the pain out of financial operations for SMBs,” said Lacerte. “Our goal is to make financial automation as seamless as possible, giving business owners more time to focus on growth.”
Why B2B Payments Have Been Slow to Digitalize
Despite the massive volume of B2B transactions, most major payment companies still focus on consumer payments. This is largely due to the complexity of B2B payments. Cash flow optimization—deciding whom to pay late and whom to collect from early—is a fundamental part of working capital management, adding layers of intricacy that consumer payments don’t have.
BILL addresses this challenge by providing software that simplifies these processes. The company believes that while multiple providers will exist in the space, the demand for seamless, integrated solutions will lead to industry consolidation rather than fragmentation.
“B2B payments aren’t just about moving money,” Lacerte noted. “They’re about relationships, cash flow, and decision-making. That’s why automation is key.”
Strategic Acquisitions to Expand Capabilities
To enhance its suite of financial solutions, BILL has pursued strategic acquisitions, including Divvy (a corporate expense management platform), Invoice2go (an invoicing solution), and Finmark (a financial forecasting tool). These acquisitions align with BILL’s vision of offering SMBs tools they’ve never had before, allowing them to manage cash flow with greater efficiency.
For instance, Invoice2go strengthened BILL’s accounts receivable capabilities, while Finmark’s acquisition enabled the development of advanced cash flow forecasting features. By continuously expanding its offerings, BILL ensures that businesses can automate financial decisions more effectively.
“As we grow, we’re focused on bringing more value to SMBs,” Lacerte explained. “These acquisitions help us offer a full suite of financial tools that small businesses truly need.”
Innovative Distribution Strategies
One of the biggest challenges in serving SMBs is distribution. Unlike consumers or large enterprises, SMBs have a fragmented customer base and high turnover. BILL has tackled this challenge through a multi-channel approach, including direct sales, accountant partnerships, and collaborations with banks.
Accountants and banks are among the most trusted advisors for SMBs, making them ideal distribution partners. By integrating BILL’s platform into these existing relationships, the company has been able to reach and support a broad range of businesses effectively.
The Intersection of Software and Payments
BILL is more than just a payments platform—it’s a financial operations software company. B2B payments are inherently complex, with varying invoice amounts, vendor relationships, and approval workflows. By solving the operational challenges first, BILL earns the right to facilitate payments seamlessly.
The company started with software automation, then expanded into payments, gradually adding ACH, virtual cards, international payments, and more. This approach ensures that businesses don’t have to think twice about their financial processes—BILL handles the heavy lifting.
“At the core, we’re a software company,” said Lacerte. “Payments are a natural extension of what we do, but our real mission is to simplify financial operations for SMBs.”
The Role of Real-Time Payments
With multiple payment options already integrated into its platform, including ACH, wire transfers, and virtual cards, BILL is constantly evolving to meet customer preferences. While real-time payments (RTP) are often seen as the future, BILL’s focus remains on providing choice. By allowing businesses and suppliers to select the payment methods that best fit their needs, BILL ensures flexibility and continued growth.
A Legacy of Passion for SMBs
René Lacerte comes from a family deeply rooted in financial technology. Growing up in a family business that worked closely with accountants and SMBs, his passion for serving small businesses was ingrained early on. This personal connection drives BILL’s mission to empower SMBs with financial tools that simplify operations and fuel growth.
“I’ve always believed in the power of small businesses,” Lacerte shared. “They are the backbone of the economy, and we want to give them the financial tools they need to thrive.”
Looking Ahead
As BILL continues to expand, the company remains committed to automating financial operations, enhancing cash flow insights, and simplifying B2B payments. With its focus on innovation, strategic acquisitions, and a deep understanding of SMBs, BILL is well-positioned to lead the future of digital financial operations.
B2B payments may be complex, but with the right technology, businesses can streamline their financial processes and focus on what matters most—growth.
This article is based on a conversation with René Lacerte, CEO of BILL, featured in a McKinsey podcast. Click here to read the full article on McKinsey.com: https://www.mckinsey.com/industries/financial-services/our-insights/bringing-digital-to-b2b-payments
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