E-invoicing, Security, and Digital Transformation in Peppol

This article presents insights drawn from a discussion with Paul Simons, who serves as the PoAC Community Leader within the Peppol network. He is also deeply involved in the work of CEN/TC 434, which sets European standards for e-invoicing. Through his dual role, he offers a unique perspective on the evolution, challenges, and opportunities surrounding electronic invoicing, with particular focus on security, accessibility, and scalability.

Paul Simons plays a key role in Peppol’s Post-Award Community (PoAC), which focuses on documents and processes after contract signing, such as e-invoicing. Simultaneously, he is closely involved in CEN/TC434, the technical committee responsible for developing and maintaining the European standard EN 16931. These two work-streams are highly interconnected. According to Paul, it’s nearly impossible to draw a strict line between them: “It all blends together.”

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Security within the Peppol ecosystem

Business-critical data demands structural security

‍Because Peppol is a trusted, worldwide network used for sensitive transactions, Access Points must ensure that security is at all times on top of mind.

Paul points to the risks during the onboarding process of companies onto the network, such as:

• KYC (Know Your Customer): Verifying the company registration number and the authorized signatory.
• The need for periodic re-verification of clients and the capture of any changes in status (e.g., deregistration, bankruptcy, change of ownership).
• Encouragement of ISO 27001 certification for all service providers.

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“Every service provider must realize: if your netwerk certificate is revoked, you will block all your end customers.”

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International Pressure for Higher Standards‍

‍As more governments adopt Peppol as the backbone for their national e-invoicing infrastructures, there is a growing wave of international pressure to raise compliance, interoperability, and security standards.

What began as a European interoperability initiative has evolved into a global framework, and with that expansion comes increased scrutiny, both from within the network and from external regulators, trade partners, and industry bodies.

The ambition to register 1.2 million companies in Belgium alone demands more robust security and scalable processes. More service providers mean more risk unless preventive measures are in place.

Peppol’s expansion into countries like Singapore, Malaysia, and the UAE means that international security requirements are rising.

• OpenPeppol itself has responded by tightening policies:
  • Updated Service Provider Agreements with clearer obligations
  • Stricter SMP/SML management policies
  • Enforcement of periodic participant verification
• International trade bodies are pushing for:
  • Broader mutual recognition of Peppol IDs across borders
  • Transparency in onboarding and governance models
  • Alignment with EU eInvoicing Directive (2014/55/EU) alike initiatives in non-EU markets
• Multinational enterprises are pressuring countries to ensure that local Peppol implementations are not only compliant, but also interoperable and predictable, avoiding fragmentation through local deviations.

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Cost and accessibility: the debate around mandates and fairness

As e-invoicing becomes mandatory in more countries, particularly for B2G and soon B2B ransactions, many small businesses are voicing concerns. While most understand the value of digitalisation, they question the fairness of being legally required to adopt a system that comes with a cost.

Typical objections include:

• “Why do I have to pay for something that’s mandatory?”
• “This seems too complex for my small business.”

For small enterprises that only send a few invoices per month, even basic setup and usage fees can feel burdensome, especially when paired with unfamiliar digital tools and technical jargon.

According to Paul, these concerns often lack context. In practice, the costs are minimal:

• Entry-level e-invoicing services are available for a few Euro’s per month. Some charge a few cent per invoice sent.
• Free options exist for receiving invoices, or a limit number of documents that can be sent.

Paul also notes that e-invoicing can save money in the long run. Accountants may charge less for processing structured invoices, and businesses avoid the hidden costs of manual entry, printing, and mailing.

Then you have the major advantages of e-invoicing, like automatic processing and booking:

• Accountants report up to 90% automation accuracy after just a few months.
• Time savings translate to lower costs or higher margins.
• Tools are becoming smarter

Electronic invoicing will bring transparency, confidence, and control to business owners in the long term.

‍Conclusion

‍The transition to mandatory e-invoicing and Peppol-based document exchange is not just a technical operation. It represents a system change that combines security, accessibility, education, and scalability.