Paystand (NASDAQ:PAYS) has made a strategic move by acquiring spend management software startup Teampay, with the goal of building a “fee-free B2B digital payments and consumption powerhouse.”
Financial terms of the deal were not disclosed, but Teampay has successfully raised $65 million since its founding in 2016.
The merger unites two organizations serving more than 1 million businesses on commercial blockchain, with transaction volume exceeding $10 billion to date, equivalent to approximately 2% of annual U.S. B2B payments.
Paystand CEO Jeremy Almond shared with TechCrunch that Teampay represents a new breed of fintech companies offering innovative products to CFOs looking to modernize their workflows. This acquisition is consistent with Paystand’s vision to deliver next-generation experiences to customers amid a significant wave of modernization.
According to Almond, maintaining the Teampay brand is a strategic decision given its strong reputation in the market.
The acquisition of Teampay is Paystand’s second acquisition in two years, following the acquisition of payments platform Yaydoo in 2022. With $1 billion in venture capital funding and a valuation exceeding $98 million since its founding in 2014, Paystand aims to leverage Teampay’s capabilities to enhance both accounts. Accounts receivable and accounts payable process.
Almond highlights the consumerization trend in the enterprise space, aiming to replicate the seamless payment experience seen in consumer finance apps like Venmo and CashApp within the B2B space.
Despite recent growth in fintech, the banking industry continues to struggle with outdated payment rails that result in higher fees, more intermediaries, and more delays. Paystand solves these problems by leveraging a decentralized financial infrastructure based on the Ethereum blockchain to provide fee-free business-to-business payments through the Paystand Bank network.
Almond believes that blockchain technology represents a paradigm shift away from traditional central banking systems, delivering real value to business and finance teams. He argues that the readiness of blockchains and decentralized financial networks depends on their ability to create tangible benefits for users.
In conclusion, Paystand’s acquisition of Teampay marks a strategic move toward B2B payments innovation within the decentralized finance landscape, providing businesses with improved efficiencies, cost savings, and streamlined processes.
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