Introduction:
Paystand, a leading blockchain-enabled B2B payments provider, has recently acquired Teampay, a spend management software startup. The acquisition aims to create a no-fee B2B digital payment and spend powerhouse. While the financial terms of the deal were not disclosed, Teampay has already raised an impressive $65 million since its establishment in 2016.
The Powerhouse of Paystand and Teampay:
The merger of Paystand and Teampay brings together two innovative companies that are revolutionizing the world of finance. With over 1 million businesses running on a commercial blockchain and more than 1 million participants, the combined company offers a powerful platform for digitizing financial processes. To date, it has processed over $10 billion in transactions, accounting for nearly 2% of annual U.S. business-to-business payments.
A Next-Gen Experience for CFOs:
Paystand CEO Jeremy Almond believes that Teampay represents the new class of fintech companies that are transforming the financial industry. He highlights Teampay’s products for CFOs, which allow them to digitize their workflows and streamline their processes. This next-gen experience is crucial for businesses undergoing a significant modernization process. By leveraging Teampay’s expertise, Paystand aims to provide its customers with innovative solutions that can revolutionize their financial operations.
Maintaining the Teampay Brand:
Despite the acquisition, Paystand plans to continue running the Teampay brand. According to Almond, Teampay is well-known in the industry, and maintaining its brand identity will be beneficial. It demonstrates Paystand’s commitment to providing comprehensive solutions that cater to the unique needs of its customers.
Learning from Consumer Finance Apps:
Almond emphasizes the importance of learning from consumer finance apps in the B2B world. While sending and receiving funds in the B2B space has traditionally been complex, slow, and costly, consumer finance apps like Venmo and CashApp have simplified the process for individuals. Paystand aims to incorporate similar features into its platform, enabling businesses to send and receive money seamlessly.
Expanding Blockchain Functionality:
This acquisition marks Paystand’s second in two years, following its purchase of payment platform Yaydoo in 2022. While Teampay is not currently on the blockchain, Paystand’s integration of Teampay’s technology will enable the company to bring blockchain functionality to both the accounts receivable and accounts payable sides. This expansion will further enhance the efficiency and transparency of B2B transactions.
The Consumerization of the Enterprise:
Almond sees the trend of consumerization extending into the enterprise realm. While fintech has been booming in recent years, the banking industry still faces challenges with aging payment rails. This results in higher fees, more intermediaries, and delays. Paystand’s focus on a decentralized financial infrastructure, powered by the Ethereum blockchain, aims to address these issues. Almond compares blockchain to the new cloud, representing a fundamental shift away from traditional central banking systems.
The Value of Blockchain and Decentralized Finance:
Despite skepticism surrounding blockchain and decentralized finance, Almond believes that these technologies have the potential to create real value for businesses and finance teams. He argues that by offering tangible benefits and solving existing challenges, blockchain and decentralized finance can gain widespread adoption. Paystand’s success in leveraging blockchain for zero-fee B2B payments is a testament to the potential of these technologies.
Conclusion:
The acquisition of Teampay by Paystand creates a formidable force in the world of B2B digital payments and spend management. By combining their expertise, these companies are poised to revolutionize financial operations for businesses. Paystand’s commitment to blockchain technology and its focus on providing value to customers sets it apart in the industry. As the consumerization of the enterprise continues, Paystand’s innovative solutions offer a glimpse into the future of B2B finance.