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Paystand (NASDAQ:PAYS) has made a strategic move by acquiring spend management software startup Teampay, aiming to establish a “no-fee B2B digital payment and spend powerhouse.”
While the financial terms of the deal were not disclosed, Teampay has successfully raised $65 million since its inception in 2016.
The merger brings together two entities servicing over 1 million businesses on a commercial blockchain, with a transaction volume exceeding $10 billion to date, representing close to 2% of annual U.S. business-to-business payments.
Jeremy Almond, CEO of Paystand, shared with TechCrunch that Teampay represents a new breed of fintech companies, offering innovative products to CFOs seeking to modernize their workflows. The acquisition aligns with Paystand’s vision of providing next-gen experiences to its customers amidst a significant modernization wave.
Maintaining the Teampay brand is a strategic decision due to its established reputation in the market, according to Almond.
The acquisition of Teampay marks Paystand’s second in two years, following the purchase of payment platform Yaydoo in 2022. With a valuation surpassing $1 billion and $98 million in venture capital funding since its inception in 2014, Paystand aims to leverage Teampay’s capabilities to enhance both accounts receivable and accounts payable processes.
Almond emphasizes the trend of consumerization in the enterprise space, aiming to replicate the seamless payment experiences seen in consumer finance apps like Venmo and CashApp within the B2B realm.
Despite fintech’s recent growth, the banking industry grapples with outdated payment rails, resulting in higher fees, increased intermediaries, and delays. Paystand addresses these issues by leveraging decentralized financial infrastructure powered by the Ethereum blockchain, offering zero-fee business-to-business payments through its Paystand Bank Network.
Almond believes that blockchain technology represents a paradigm shift away from traditional central banking systems, offering real value to businesses and finance teams. He asserts that the readiness of blockchain and decentralized finance networks lies in their ability to create tangible benefits for users.
In conclusion, Paystand’s acquisition of Teampay signifies a strategic move towards revolutionizing B2B payments within the decentralized finance landscape, offering businesses enhanced efficiency, reduced costs, and streamlined processes.
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