BlueGill's WebStream software, which the company says can be installed in five days, can be used to take standard print-stream data that's being used to produce paper invoices and convert it to HTML or a PDF file so that it can also be presented on the Web. BlueGill is also introducing three payment modules that let merchants receive funds directly from customers or via the two primary online bill-processing companies, CheckFree and TransPoint.

The drawback of grabbing data bound for printers is that it doesn't allow for the two-way communication desired by companies that want to use their bills as a way of initiating online relationships with their customers that lead to increased sales or customer loyalty. "HTML is one-way presentment," says Richard Pickering, BlueGill's VP of marketing. "It's very static."

That's not where most companies want to be, but Yankee Group analyst Paul Hughes says WebStream offers "a baby step" for companies just getting started in billing. "To go to a completely interactive environment takes a substantial investment," he says. Pickering says a typical implementation of BlueGill's i-Series software, which provides full interactivity using the Extensible Markup Language, is priced around $300,000. Base price for WebStream software and installation is $130,000.

But some companies are reluctant to spend either sum in a new market that lacks clearly defined best practices. Says Hughes, "It's evolving very quickly, but there's still a lot of wait-and-see going on."