B2B Payments Innovator Paystand Secures $50 Million in Series C Funding

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In a round led by new investor NewView Capital, blockchain-based commercial payments innovator Paystand has raised $50 million in funding. The company leverages the cloud and the Ethereum blockchain to power its Paystand Bank Network, a no-fee, digital B2B payment system used by more than 250,000 companies to make payments.

“With this new funding, Paystand is uniquely positioned to bring the benefits of blockchain to commercial payments so businesses can be more agile and competitive in the post-pandemic landscape,” Paystand CEO Jeremy Almond said. “Our vision is to create an open financial infrastructure that delivers a self-driving money experience for businesses and provides radically better economics for the industry itself.”

The investment takes Paystand’s total capital to more than $78 million. Also participating in this week’s financing were SoftBank’s Opportunity Fund, King River Capital, Industrious Ventures, and Transform Capital. As part of the investment, NewView Capital’s Jazmin Medina will join Paystand’s board of directors.

Paystand’s innovation is to automate the entire cash lifecycle to enable businesses to enhance the overall customer experience with seamless, B2B payment options. The company’s technology helps businesses accelerate time-to-cash, lower DSO (daily sales outstanding) by 60% or more, as well as reduce fraud and chargebacks thanks to real-time fund verification. And instead of charging businesses a percentage on each transaction, Paystand’s business model relies on subscriptions which the company says allows businesses to scale their payments operations without having to worry about dramatically increased fee-per-transaction expenses.

An alum of our developers conference, FinDEVr, Paystand was among the many fintechs who was able to turn the crisis of the global pandemic into an opportunity to support businesses that suddenly found themselves sprinting toward digital transformation. In a blog post discussing the challenges facing businesses during this time, Almond noted that while many companies had already migrated to the cloud for their “systems of record” (i.e., CRM, ERP, etc.), the “critical component” and “last mile” of digital transformation – revenue – was left underaddressed.

“Finance teams found themselves forced to return to the office at the height of COVID-19 outbreaks just to pick up checks and deal with cash flow,” Almond wrote, “something that clearly exposed the backwards nature of the legacy payment system.”

In May, Paystand inked a partnership with cloud business management solution provider Sage to enable a “Venmo for Businesses” like service via Paystand’s B2B payment network. The following month, the Scotts Valley, California-based fintech launched its Smart Lockbox, a digital-first alternative to traditional lockbox services. Smart Lockbox enhances the ability of businesses to transition away from paper-based payments to faster, less expensive, digital options, and makes migration easy with a seamless, one-click process.

“Smart Lockbox is the key tool that helps companies seamlessly bring their mission-critical revenue into the digital age,” Almond said when the solution was announced. “In a post-pandemic world, everything looks very different. COVID supercharged the push for digital transformation across the board for businesses, and there’s no question that this shift is here to stay. Now, with Smart Lockbox, finance teams can turn their biggest headaches into a newfound source of power.”


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https://finovate.com/b2b-payments-innovator-paystand-secures-50-million-in-series-c-funding/