Bill expands payment options for SMBs with Local Transfer

SAN JOSE, Calif. - BILL (NYSE:BILL), a prominent financial operations platform for small and midsize businesses (SMBs), has introduced new payment solutions aimed at simplifying and securing transactions for SMBs and accountants. The new features, which enhance BILL's payment engine, include Local Transfer for international payments and improvements to Instant Payment and Invoice Financing options.

Local Transfer allows businesses to make same-day international payments in local currencies directly to foreign banks, bypassing intermediaries and their fees. This service is expected to deliver payments up to four days quicker than traditional foreign exchange wires and three days faster than USD wires through BILL. The absence of intermediary and wire fees, coupled with minimized exchange rate risks, positions Local Transfer as a cost-effective and efficient payment method for SMBs.

Additionally, BILL has upgraded its payment capabilities to provide more flexibility and control over cash flow. The Instant Payment option enables real-time transactions within the U.S., utilizing a real-time payment network between financial institutions. This service is available 24/7, including holidays and weekends, facilitating immediate cash flow management.

For businesses seeking quick access to capital, BILL has streamlined its Invoice Financing process. SMBs can now secure up to $100,000 in financing within minutes after a one-time credit approval that does not impact their credit score. This feature helps businesses avoid the typical 30-day wait for invoice payments, promoting better cash flow management.

The new payment offerings have been well received by SMBs and accountants. Robert Bess, CEO of DayOne Solutions, highlighted the significant time savings achieved with Local Transfer for payments to the Philippines. Patrick Curtis, CPA, CGMA, at Rubino, emphasized the importance of BILL in their client solutions, praising the security and control provided by BILL's payment options.

Currently, Local Transfer is available in 15 countries, with plans to expand to 40 countries. The enhanced Instant Payment and Invoice Financing services are already accessible.

This expansion of services by BILL reflects the company's ongoing commitment to providing SMBs with innovative financial tools to optimize their operations. The information is based on a press release statement from BILL.

In other recent news, Bill.com has made several significant developments. The company announced the appointment of Mary Kay Bowman as Executive Vice President, General Manager of Payments and Financial Services, bringing with her two decades of global payments strategy experience. Bill.com's fourth-quarter results exceeded expectations, with a year-over-year revenue growth of approximately 16%, a 9% increase in organic total payment volume, and adjusted earnings per share of $0.57, as reported by Deutsche Bank, which maintained its Buy rating on the company. Mizuho, however, reduced its price target on Bill.com's stock due to a decline in the net revenue retention rate and lower-than-expected revenue growth guidance for fiscal year 2025.

Seaport Global Securities also lowered its price target but kept a Buy rating, following the announcement of an 11% increase in revenue and a decrease in adjusted operating income for fiscal year 2025. Needham maintained a Buy rating, highlighting strong demand and growth prospects, as the company reported a robust quarter that exceeded expectations. Bill.com also announced a new $300 million share buyback program and plans to invest $45 million in fiscal year 2025 to reaccelerate growth. The company's recent activities also include an expansion agreement with Bank of America and a strategic partnership with Xero to enhance its platform.

InvestingPro Insights

BILL (NYSE:BILL), the financial operations platform that's been making waves in the SMB sector with its new payment solutions, also presents an interesting case from an investment standpoint. With a market capitalization of $5.63 billion, the company's growth trajectory is underscored by a significant 21.89% revenue growth in the last twelve months as of Q4 2024, indicating a robust expansion in its business operations.

An InvestingPro Tip that aligns with BILL's recent developments is the company's impressive gross profit margin, which stands at 85.3%. This margin showcases the company's ability to manage its cost of goods sold effectively, thus contributing to the overall profitability that analysts expect to see this year. Additionally, the company's management has been actively buying back shares, a move that often reflects confidence in the business and can signal to investors the potential for increased shareholder value.

Investors interested in BILL's stock should note that while the company has been non-profitable over the last twelve months, there is a positive sentiment among analysts who predict profitability within this year. This potential turnaround is particularly relevant for those considering long-term investment horizons.

For those looking to delve deeper into the financials and forecasts for BILL, InvestingPro offers a comprehensive list of additional tips – there are 9 more tips available that could provide further insight into the company's investment potential.

It's also worth noting that the company holds more cash than debt on its balance sheet, a reassuring sign of financial stability in the often volatile tech sector. However, potential investors should be aware of the stock's volatility, as indicated by the six-month price total return of -22.51%.

For the latest and more detailed analysis, including additional InvestingPro Tips, visit https://www.investing.com/pro/BILL.

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