Tradeshift lights the touchpaper – integrates PayPal into its free invoicing platform

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Tradeshift, which describes itself as the “Skype for invoicing”, has integrated PayPal into its free e-invoicing platform for customers in the UK and the US. Now customers will be able to make direct payments of their invoices, resulting in faster transactions and reduced rates for international transfers compared to regular banks. All that’s required is a PayPal Business Payments account, which means they only pay a minimal flat rate regardless of how large the payment amount is.

Clicking the “Pay with PayPal” automatically populates the invoice, saving time and reducing human error. Clearly Tradeshift has decided to user PayPal as a way to get around global bank fund transfers. Tradeshift’s ‘social network’ for business transactions plus Paypal’s payment platform look like a killer combination.

The Danish startup’s free invoicing platform is a direct challenge to banking systems and credit card processing. Instead of nickel-and-dimming companies for invoicing, Tradeshift’s business model is based on creating an API platform for free, legally binding invoicing and then allowing third parties to create other applications, as well as leveraging their own. Last June it announced a raft of new partners in the SaaS accounting space, for instance.

Admittedly Tradeshift does have competitors, such as OB10 which operates an Electronic Data Interchange. In February OB10 signed an agreement with Virgin Atlantic to service the company’s global invoice process management for their US and UK operations. There is also the well-estanblished Maventa.com.

However, none leverage open Web technologies in the way Tradeshift does, essentially dragging invoicing and business transactions into the 21st century via open standards and the cloud – news which we broke on its launch in February last year.

We’ve also got a deal for you. For the first 250 TechCrunch readers who sign and invoice “Tradeshift Network Ltd. (Campaign)” with the line “Shift Happens” in the invoice using PayPal payments, will receive $10 immediately. Tradeshift is also giving new and existing customers an additional $5 in PayPal payouts for each contact they introduce to Tradeshift.

Tradeshift is based in Copenhagen with offices in London, Munich, Bern, and Brasil with customers in 150 countries.

  • http://topsy.com/eu.techcrunch.com/2011/02/17/tradeshift-lights-the-touchpaper-integrates-paypal-into-its-free-invoicing-platform/?utm_source=pingback&utm_campaign=L2 Tweets that mention Tradeshift lights the touchpaper – integrates PayPal into its free invoicing platform -- Topsy.com

    […] This post was mentioned on Twitter by TechCrunch, Mike Butcher, TechCrunch Europe, LolCrunch, Robert McIntosh and others. Robert McIntosh said: RT @mikebutcher: Tradeshift lights the touchpaper – integrates PayPal into its free invoicing platform http://bit.ly/i38yPN […]

  • http://influads.com/ damiansen

    “has integrated PayPal into its free e-invoicing platform for customers in the UK and the US. ”
    What does that mean? UK and US paypal accounts only?

    • http://tradeshift.com Levin

      Hello damiansen. Thanks for asking!
      We’ve actually integrated PayPal payments for all of our customers (currently over 150 countries). The mentioned above is referring to PayPal business payments. We can offer business payments in the US and UK (which is cheaper for larger amounts transferred because of a flat rate fee), but will integrate them for other countries soon.

      Hope this helps
      Levin from Tradeshift

      • Paul W

        Hi Levin,
        “but will integrate them for other countries soon”
        I presume this is dependent on PayPal introducing flat rate charging for business transactions in these
        other countries ?.

        Paul W

      • http://tradeshift.com Levin

        Hi Paul. Yes this is basically the case. Since we at Tradeshift are set to make doing business easier for all companies (especially so for small companies), this is a great feature. We worked hard to get this on the road in US and UK and will definitely do the same to make this happen for businesses in other countries as well. Cant go more into detail here unfortunately.

  • Tony A.

    Levin: your direct customers or customers of customers listed in tradeshift? now choose words wisely my friend :)

    Have a few soundbites in regards of traction which might be of interest to others..

    Anthony

  • Tony A.

    Levin: your direct customers or customers of customers listed in tradeshift? now choose words wisely my friend :)

    Have a few soundbites in regards of traction which might be of interest to others..

    Anthony

    • http://tradeshift.com Levin

      Hi Tony. Sorry for the late answer. Tradeshift has users (or “direct customers” so to speak) from over 150 countries ON the platform. Pretty amazing traction that is.

  • http://www.alamto.com Alamto

    Very thanx:x

  • http://www.alamto.com Alamto

    Very thanx:x

  • http://dansgalaxy.co.uk Dansgalaxy

    Typo?

    “radeshift has decided to user PayPal as a way to”

    Should probably be “decided to use PayPal” :)

  • Paul W


    All that’s required is a PayPal Business Payments account, which means they only pay a minimal flat rate regardless of how large the payment amount is.

    Really !!!! not according to below
    https://www.paypal.com/ie/cgi-bin/webscr?dispatch=5885d80a13c0db1f8e263663d3faee8d61ec37c409b56235bed2ddf64505aee9

    Paypal(still) is a very expensive way to bill oversea clients… and domestic clients for that matter.
    https://www.paypal.com/ie/cgi-bin/webscr?cmd=_display-receiving-fees-outside&countries=

    I guess that’s how they managed to pay for their nice new building :)

    http://www.irishtimes.com/newspaper/breaking/2011/0217/breaking27.html

    Paul W

    • SufNCity

      +1. My company uses Paypal and is linked to a bank account. Paypal has an invoicing feature available on their website. And we use it to bill customers. When we receive the payment Paypal takes a percentage based cut of it in addition to a flat fee. Transactions over $1000 are cheaper to do by wire transfer between banks.

      So, if you can prove that Paypal will magically stop taking a percentage based cut because you use their API, I will use Tradeshift in a heartbeat. But I think you are very misinformed about the costs of using Paypal.

      • http://tradeshift.com Levin

        I think you refer to PayPal merchant rates. Like described here: https://www.paypal.com/cgi-bin/webscr?cmd=_fees-rate-about-outside

        This indeed the payment feature we’ve integrated for all our customers. But for the US and UK we can offer “PayPal business payments” in addition to that. This product is still in pilot mode and only accessible through selected partners of PayPal. I suggest you just try Tradeshift out, and experience the product in action. :)

        hope this helps!
        best regards
        Levin

  • Myscrapbox

    all one needs is two accounts, one in each country.
    transfer rates are zero!

  • John

    I am a small business owner based in UK with UK clients. So are you saying with Tradeshift/Paypal I can invoice my clients and they can pay using say debit or visa card on Paypal and its ALL FREE end-to-end. I would guess not in which case what are the charges roughly either Tradeshift or Paypal? Thanks John

    • http://tradeshift.com Levin

      Hi John,

      Yes, Tradeshift is completely free for you and your customers. As for the PayPal business payments, the receiver pays a low fixed fee of about £0.35 when he collects the money, regardless of how high the transaction is. The PayPal account has to be linked to a bank account. This is only for UK to UK (or US to US) right now – but we will expand this to other countries soon.

      So this is good news for you AND your customers ;)

      • John

        Levin, Thanks for the update, does my client HAVE to have a paypal account or just me on the collections side?

      • http://tradeshift.com Levin

        Yes, your client would have to have a PayPal account to make this happen. And you might have already noticed that PayPal has not yet provided public information about business payments yet. The reason for this is that business payments are still in pilot mode.
        Together with our innovative invoicing solution and business network solution this is definitely a disruptive solution for all kinds of businesses. Thats why we had this on high priority.
        I would suggest you make a test-run with one of your partners. Tradeshift is free, as mentioned and I am sure you will be more then pleased about the time and cost savings that you will experience :)
        So please give us a heads up about how you like it when you tried it out.

        best regards
        Levin

      • Paul

        Hi Levin,

        The killer feature will be EU to US (or for me ‘Ireland to US’), I have a big problem invoicing
        my clients in US without losing a big % to a payment service.
        I see harvest also have this arrangement with paypal in US.
        http://www.getharvest.com/blog/page/3/

        Hope u can offer it soon.

  • Anonymous

    Read my blog at http://bit.ly/eLwJ9p

  • http://thereisnoappforthat.com Vincent

    regarding:
    “Now customers will be able to make direct payments of their invoices”

    Most billing solutions I’ve used and full online accounting systems already include ability for clients to pay via a simple link directly from the email or PDF invoice.

    So why would I want the hassle of using yet another system that only does invoicing??

  • GERRY

    WOW,AND THERE’S A DEAL TOO!

  • JD

    If you are outside USA you can only transfer money out of PayPal to a credit card – The bank will charge 2.8% to take the money out of the credit card account. Tradeshift claim that this is “FREE” is not true.

  • http://eu.techcrunch.com/2011/05/16/tradeshift-raises-7m-for-its-skype-for-invoicing-and-wider-b2b-play/ Tradeshift raises $7m for its ‘Skype for invoicing’ and wider B2B play

    […] former MySQL CEO Mårten Mickos and founding investor in LastFM Stefan Glaenzer. PayPal, which is integrated into the platform, is also an […]

  • http://trendoloji.com/?p=2124 Tradeshift Artırdı $ 7m Onun için Platform Ve Geniş B2B Play ‘Skype faturalandırma’

    […] former MySQL CEO Mårten Mickos and founding investor in Last.fm Stefan Glaenzer. PayPal, which is integrated into the platform, is also an […]

  • http://www.bitmag.com/2011/05/16/tradeshift-raises-7m-for-its-%e2%80%98skype-for-invoicing%e2%80%99-platform-and-wider-b2b-play/ Tradeshift Raises $7m For Its ‘Skype for invoicing’ Platform And Wider B2B Play | Bitmag

    […] former MySQL CEO Mårten Mickos and founding investor in Last.fm Stefan Glaenzer. PayPal, which is integrated into the platform, is also an […]

  • http://www.24technologynews.com/top-news/tradeshift-raises-7m-for-its-%e2%80%98skype-for-invoicing%e2%80%99-platform-and-wider-b2b-play-2 Tradeshift Raises $7m For Its ‘Skype for invoicing’ Platform And Wider B2B Play : 24 Technology News

    […] former MySQL CEO Mårten Mickos and founding investor in Last.fm Stefan Glaenzer. PayPal, which is integrated into the platform, is also an […]

  • http://eu.techcrunch.com/2011/06/14/tradeshift-bags-the-nhs-as-a-customer-for-its-free-e-invoicing-details-emerge/ Tradeshift bags the NHS as a customer for its free e-invoicing, details emerge

    […] former MySQL CEO Mårten Mickos and founding investor in Last.fm Stefan Glaenzer. PayPal, which is integrated into the platform, is also thought to be an investor. CrunchBase Information Tradeshift […]

  • http://www.tech2up.com/tech/?p=90683 Tradeshift Raises $7m For Its ‘Skype For Invoicing’ Platform And Wider B2B Play | Tech 2 Up

    […] former MySQL CEO Mårten Mickos and founding investor in Last.fm Stefan Glaenzer. PayPal, which is integrated into the platform, is also an […]

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