Signalling its intention to extend its reach in the business-to-business (B2B) payments and invoice automation market, Bank of America (BoA) has forged a strategic alliance with US B2B payment and invoice automation specialist Bottomline Technologies. Central to the alliance is BoA’s sale of PayMode, its B2B software-as-a-service (SaaS) unit, to Bottomline for $17 million plus warrants for 1 million Bottomline shares.
“After a thorough evaluation, we concluded that working with Bottomline will accelerate the growth and capability of PayMode and enable us to quickly deliver an even more compelling offering to our clients,” explained Dub Newman, global product management executive for BoA.
“We selected Bottomline due to its deep domain expertise, focus on financial supply chain technology and impressive order-to-pay solution set.”
Launched in March 2008 PayMode has been adopted by 550 BoA corporate clients for payables automation with a total of 80,000 of the clients’ suppliers receiving electronic payments and remittance data. Since launch about $300 billion in electronic transactions have been processed by PayMode.
Commenting on the BoA alliance, Rob Eberle, Bottomline’s president and CEO said: “We believe that this arrangement will significantly accelerate our strategic plan and business model, while firmly establishing Bottomline as a leading player in financial supply chain automation.”
Founded in 1989, Bottomline operates in the US, Europe and Asia-Pacific regions. With more than 9,000 customers, including 80 Fortune 100 companies and 70 of the largest 100 listed companies in the UK, the company brings with it significant scale. Big-name customers include Aviva, the UK’s largest insurer, and Deutsche Bank, Germany’s largest bank.
Underscoring BoA’s selection of Bottomline have been notable accolades from research firms including Celent which in an evaluation of online cash management solutions in July this year termed Bottomline a “payments powerhouse.”
Celent highlighted Bottomline’s WebSeries Global Cash Management platform for its performance and reliability, attributes that Celent believes are “a must when dealing with large banks with high transaction volumes.” Celent added that Bottomline is one of few vendors possessing international experience and exposure.
Celent’s accolade followed that of Aite Group’s award in April of a best-in-class ranking to Bottomline’s global cash management.