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Paystand acquires Teampay to be DeFi version of ‘Venmo for B2B payments’ | TechCrunch

Paystand acquires Teampay to be DeFi version of ‘Venmo for B2B payments’ | TechCrunch

Paystand has acquired a spend management software startup. On the team To create what the companies describe as a “fee-free B2B digital payments and spending powerhouse.”

Financial terms of the deal were not disclosed. TeamPay has raised $65 million since it was founded in 2016.

The combined company serves more than 1 million participants in more than 1 million businesses running on commercial blockchains. It has processed more than $10 billion in transactions to date, which it says is about 2% of annual US business-to-business payments.

“Teampay represents this new class of fintech companies,” Paystand CEO Jeremy Almond told TechCrunch exclusively. “They have products for CFOs that can really transform how they digitize all of their workflows. It's what I would call a next-generation customer experience and it's right for our customers. Who are really going through this major process of modernization.

He said the Paystand team will continue to operate the Pay brand, primarily because it is well-known.

Badam believes that business fintech should learn from consumer finance apps. In the B2B world, the process of sending and receiving funds is complicated, slow and fraught with fees. But users can send and receive money to each other through Venmo or the Cash app. These are the features he wants Paystand to offer.

TeamPay is the blockchain-powered B2B payments provider's second acquisition in two years. He bought a payment platform. Yaydoo In 2022 by that time, Paystandwas worth north of $1 billion. Paystand has brought in $98 million in venture capital since it was founded in 2014. Teampay is not on the blockchain, however, Paystand can now bring this functionality to both accounts receivable and accounts payable.

“We understand that this is the consumerization trend of the enterprise,” Badam said. “Now we can offer 1 million businesses on both sides.”

While fintech has been a hot industry in recent years, the banking industry as a whole is one. The problem of aging payment rails. This causes higher fees, more intermediaries and delays. Badam has long been a proponent of using decentralized financial structures to solve the problem of payment rails. Paystand uses the Ethereum blockchain as the engine for its Paystand Bank network, which enables business-to-business payments with zero fees.

“Blockchain is the new cloud,” he said. “I know blockchain, bitcoin and decentralized financial networks have their share of problems, but they represent a fundamental shift from the same centralized banking system that has existed since the 1930s.”

“Many people think that blockchain or decentralized finance is not ready yet,” he added. “What we're really proving is that if you create real value for the business and finance teams, people will use it.”

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