By Spencer Feingold

The business payment platform Bill.com raised $88 million in its latest round of funding, vaulting the company to a $1 billion valuation.

“We have a lot of great opportunities to leverage the capital,” the company's CEO Rene Lacerte told Cheddar on Wednesday.

Since its founding in 2006, Bill.com has become a leader in digital business-to-business (B2B) payments. The Palo Alto, Calif., company has a network of 3 million members, which include four of the 10 largest U.S. banks, and manages more than $60 billion in payments a year.

Its latest round of funding was led by the investment firm Franklin Templeton, and included major financial companies such as Mastercard and Fidelity Investments Canada.

“This is the Golden Age of [server message block] software and B2B payments with a huge market that’s ready for adoption," said Anthony Hardy, an equity investor at Franklin Templeton, in a statement.

B2B payments in the U.S. total more than $58 trillion a year, with 80 percent paid by paper checks, according to Bill.com.

“When you think about the complexities of running a business, there is a lot of hassle, a lot of drudgery,” Lacerte said in an interview with Cheddar. His goal is to simplify payment processes for companies.

Bill.com also announced a partnership with MasterCard this week to offer virtual credit cards to its clients as a digital alternative to checks.

“The business owner or CFO can be anywhere in the world and they can be paying their bills,” Lacerte said.

With the infusion of new funds, the company, which generates revenue by charging processing and transaction fees, aims to expand the number of businesses and vendors using its platform.

“We have the opportunity to continue to increase the revenue per customer, but at the same time create more value for the customer than for us,” Lacerte said.