The increase in the number of transactions indicates the digital shift of Bill Pay

Paying bills is rarely fun. And that’s not all: paying bills is rarely easy, especially as a business.

That’s why in today’s bill paying landscape, which is still full of manual workarounds, every time a bill comes due, there is often a more convenient and streamlined way to do it.

And according to the founder and CEO of Paymentus Holdings Dushyant Sharmamore and more companies are embracing a digital transformation of their invoice payment activities.

This, as Sharma told investors on Monday (May 6). investors call for its company’s Q1 2024 financial results, Paymentus processed 135.3 million transactions in Q1 2024, up 24.7% from Q1 2023.

“Paymentus started this year with another excellent quarter, mainly due to higher transaction activity from both new and existing billers,” said Sharma.

He noted that Paymentus won new customers this quarter in utilities, general services, transportation and logistics, government, banking and other industries, and deployed billers across multiple industries: utilities, insurance, government agencies, financial institutions and others.

“Sales, contribution earnings and adjusted EBITDA all increased year-on-year by 24.6%, 29.6% and 135.5% respectively. We continue to see strong momentum in our bookings and backlog, which supports our positive outlook for the remainder of 2024,” said Sharma.

Paymentus stock was trading by approximately 5% at the time of reporting.

read more: Can convenience turn digital bills into digital payments?

Digital innovation helps create a holistic bill payment platform

Traditional payment systems have limitations that often do not meet the needs of both billers and consumers.

That’s why digital invoicing solutions are becoming the key to solving the persistent paper jam that continues to hamper the back-office workflows of many companies, especially those in fragmented and complex industries such as healthcare and other sectors that are clearly behind the digital shift in the field of payment technology.

“We see more demand for a holistic platform,” Sharma told investors.

Paymentus executives highlighted that the company “was able to exceed the Rule of 40 this quarter by a wide margin, 58%,” without sacrificing growth or innovation.

The Rule of 40 is a SaaS (software-as-a-service) financial ratio that states that a healthy SaaS company has a combined growth rate and profit margin of 40% or more.

“We don’t have any technology gaps,” Sharma said, noting that Paymentus does not monitor any M&A activity. “We are very focused on execution, which is where our capital allocation strategy lies.”

read more: Can convenience turn digital bills into digital payments?

Executives also highlighted the company’s history in artificial intelligence (AI), highlighting the company’s role within its bill payments and customer onboarding transformation initiatives.

“Long before AI was a buzzword, we patented an AI integration framework” to help customers “integrate more of their processes with us,” said Sharma. “This AI-based framework, when integrated into our onboarding processes, will increase speed and demonstrate how the wise use of AI can be an important part of our strategic execution.”

The average American in 2023 received and paid more than 16.8 monthly bills. PYMNTS Intelligence has found that many Americans are looking for a single, inclusive and convenient platform to access and view their data pay their bills.

Digitizing and modernizing the invoice payment experience advantages both companies and consumers by making the process more efficient, easier and safer. That’s because historically, many businesses have relied on manual processes or outdated systems to collect payments from customers, leading to delays, errors and a poor customer experience.

Modern bill payment solutions help businesses improve increase their operational efficiency and reduce costs by automating key aspects of the billing and payment process.