Paystand acquires Teampay to be DeFi model of ‘Venmo for B2B payments’

Paystand has acquired spend administration software program startup Teampay to create what the businesses describe as a “no-fee B2B digital payment and spend powerhouse.”

Monetary phrases of the deal weren’t disclosed. Teampay has raised $65 million because it was based in 2016.

The mixed firm providers over 1 million companies operating on a business blockchain to greater than 1 million individuals. It processed greater than $10 billion in transactions up to now, which it touts is almost 2% of annual U.S. business-to-business funds.

“Teampay represents this new class of fintech companies,” Paystand CEO Jeremy Almond informed TechCrunch completely. “They have products for CFOs to really change how they can digitize all of their workflow. It’s what I’d call a next-gen experience for the users and is a good fit for our customers going through this really big modernization process.”

Paystand will proceed to run the Teampay model, primarily as a result of it’s well-known, he mentioned.

Almond believes companies fintech ought to be taught from shopper finance apps. Within the B2B world, the method for sending and receiving funds is complicated, sluggish and riddled with charges. However customers can ship and obtain cash to one another through Venmo or CashApp. These are the sorts of options he desires Paystand to supply.

Teampay is the blockchain-enabled B2B funds supplier’s second acquisition in two years. It bought fee platform Yaydoo in 2022. On the time, Paystand’s valuation was north of $1 billion. Paystand introduced in $98 million in enterprise capital since being based in 2014. Teampay isn’t on the blockchain, nevertheless, now Paystand can carry that performance to each the accounts receivable and accounts payable sides.

“We think it’s a trend of consumerization of the enterprise,” Almonds mentioned. “Now we can offer both sides to 1 million businesses.”

Regardless of fintech being a scorching trade lately, the banking trade total has an aging payment rails problem. This causes larger charges, extra intermediaries and delays. Almond is a long-time proponent of utilizing a decentralized monetary infrastructure to unravel the fee rails drawback. Paystand makes use of the Ethereum blockchain because the engine for its Paystand Financial institution Community, which permits business-to-business funds with zero charges.

“Blockchain is the new cloud,” he mentioned. “I know blockchain, bitcoin and decentralized finance networks have their share of problems, but they represent a fundamental shift away from the same central banking system that’s been in place since the 1930s.”

“A lot of people think blockchain or decentralized finance is not ready yet,” he added. “What we’re really proving is if you create real value for businesses and finance teams, people will use it.”