Paystand has acquired spend management software startup Teampay to build what the companies call a “fee-free B2B digital payments and spending powerhouse.”
Financial terms of the deal were not disclosed. Teampay has raised $65 million since his founding in 2016.
The combined company serves more than 1 million participants in more than 1 million businesses operating on commercial blockchains. The company claims to have processed more than $10 billion in transactions, representing nearly 2% of annual business-to-business payments in the United States.
“Teampay represents this new class of fintech companies,” Paystand CEO Jeremy Almond told TechCrunch exclusively. “The company is delivering products that are going to revolutionize the way CFOs digitize all their workflows. This is what I call the next generation experience for users, and this really large-scale modernization process. Perfect for our customers who are experiencing
Paystand will continue to operate the Teampay brand, he said, primarily because of its name recognition.
Almond believes fintech companies should learn from consumer finance apps. In the B2B world, the process of sending and receiving funds is complex, time-consuming, and incurs fees. However, consumers can still send and receive money from each other through her Venmo or CashApp. He wants to provide these features to his Paystand.
Teampay is the blockchain-enabled B2B payments provider's second acquisition in two years. The company acquired payment platform Yaydoo in 2022. At the time, Paystand was valued at over $1 billion. Paystand has brought in $98 million in venture capital since his founding in 2014. Although Teampay is not on the blockchain, Paystand can now offer that functionality to both the accounts receivable and payable sides.
“We think this is a trend of consumerization of businesses,” Armons said. “Now he can offer both services to a million companies.”
FinTech is an industry that has been attracting attention in recent years, but the banking industry as a whole is facing the problem of aging payment rails. This results in higher fees, more intermediaries, and delays. Almond is a long-time advocate of using decentralized financial infrastructure to solve payments rail problems. Paystand uses the Ethereum blockchain as the engine for the Paystand Bank Network, enabling business-to-business payments with zero fees.
“Blockchain is the new cloud,” he said. “We know that blockchain, Bitcoin, and decentralized financial networks have their own problems, but they represent a fundamental shift from the same central banking system that has been in place since the 1930s. ”
“Many people think blockchain and decentralized finance are not ready yet,” he added. “What we're really proving is that if you create real value for businesses and finance teams, people will take advantage of it.”