My new startup: split-the-bill.com
blog.split-the-bill.com
blog.split-the-bill.com
That said, structuring it as a longterm balancing solution for financial "partners" like roommates might be a better model.
First up, no sign up is required to create the bill. Check out the mock-ups: http://blog.split-the-bill.com/split-the-bill-the-mock-ups
Also there are no emails notifications (yet). You are free to IM, tweet, SMS or Facebook the link to the bill.
Of course we are looking at mobile phone apps and an API for other systems to integrate with (How cool would it be for a POS to include a link at the end of your receipt ?).
Integrating a payment method would also be a possibility.
Nonetheless I do like the idea of supporting more formal agreements and larger costs... will add it to the road map :)
I can see myself using this if there were an iPhone app or a good mobile site. It would be a quick step in the process if I could just note a bill and who owed me whenever I ate out, read a bill, or anything else.
Maybe a better focus would be on larger costs such as rent payments and room subletting that actually requires a more formal agreement between parties.