Paystand Banks $ 50M to Make Cashless and Commission-Free B2B Payments – TechCrunch

It’s pretty easy for people to send money back and forth, and there are plenty of cash apps to choose from. However, on the business side, a company that tries to send $ 100,000 in the same way is not so easy.

Paystand wants to change that. The Scotts Valley, California-based company is using cloud technology and the Ethereum blockchain as the engine of its Paystand Bank Network that enables commission-free business-to-business payments.

The company raised $ 50 million in Series C funds led by NewView Capital, with participation from SoftBank’s SB Opportunity Fund and King River Capital. This brings the company’s total funding to $ 85 million, Paystand co-founder and CEO Jeremy Almond told TechCrunch.

During the 2008 economic recession, Almond’s family lost their home. He decided to go back to graduate school and did his thesis on how commercial banking could improve and how digital transformation would be the answer. Compiling his vision of the company from the business side, Almond said that what Venmo does for consumers, Paystand does for business transactions between business and mid-market customers.

“Revenue is the lifeblood of a business and money has been turned into software, but everything is in the cloud except revenue,” he added.

He estimates that nearly half of business payments still involve a paper check, while fintechs are betting heavily on cards that come with transaction fees of 2% to 3%, which, according to Almond, is unsustainable when a business routinely submit $ 100,000 invoices. Paystand charges a flat monthly fee instead of a transaction fee.

Paystand platform. Image credits: Paystand

On the consumer side, companies like Square and Stripe were among the first wave of companies focusing primarily on accounts payable and then building business process software on top of an existing infrastructure.

Paystand’s world view is that the accounts receivable side is more difficult and why there aren’t many competitors. That’s why Paystand is surfing the next wave of fintech, powered by blockchain and decentralized finance, to transform the $ 125 trillion B2B payments industry by offering an autonomous, cashless, and commission-free payment network that will be an alternative to the cards, Almond said.

Customers using Paystand over a three-year period can realize average benefits such as a 50% savings on the cost of accounts receivable and a savings of $ 850,000 in transaction fees. The company is experiencing a 200% increase in the network’s monthly payment value and customers doubled last year.

The company said it will use the new funds to continue growing the business by investing in open infrastructure. Specifically, Almond would like to restart digital finance, starting with B2B payments and reinventing the entire CFO stack.

“I’ve wanted something like this to exist for 20 years,” Almond said. “Sometimes it’s the unattractive areas that can have the biggest impact.”

As part of the investment, Jazmin Medina, director of NewView Capital, will join Paystand’s board of directors. She told TechCrunch that while the venture is a generalist, it has its roots in fintech technology and fintech infrastructure.

He also agrees with Almond that the B2B payments space is lagging behind in terms of innovation and has a “strong belief” in what Almond is doing to help mid-market companies proactively manage their cash needs.

“There is a great blue ocean in the payments industry, and all these companies have to be completely digital to stay competitive,” added Medina. “There is an obvious gap if your income is holding you back because it is not digital. So now is the time. “

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