Paystand, a California based company that handles Business to Business payments via a network based on the Ethereum blockchain, has announced that it has raised $50 million in its Series C funding.
While there is a big race among the payment companies to handle user payments and get large transactions volumes, the industry for B2B payments has not kept in pace with the B2C payment industry. Even now, it is a big struggle for companies to make payments to other businesses and do settlements as these are high volume transactions and they cannot use the normal B2C payment channels to make such payments. Even if they are able to fund such channels, the charges are so high that it makes the whole transfer of payments unviable.
The latest round of funding was led by NiewView Capital and it had other investors that included SB Opportunity fund from Softbank and King River Capital. So far, the company has raised $85 million in funds in the various funding rounds.
Jeremy Almond, CEO, Paystand, said: “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.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 overall.”
Paystand looks to resolve these issues by charging a flat monthly fee irrespective of the number of transactions and their size as well. The accounts receivable B2B business is a $125 trillion business and is ripe for some serious disruption. While all the focus is on the B2C payments side with many companies like Square and Paypal trying to add on new features for users in the hope of capturing the majority of the market and Square uses the blockchain to facilitate quick and low-fee transfers, not much attention has been paid to the B2B side and Paystand looks to change all that.
As part of the investment, Jazmin Medina, principal at NewView Capital, will be joining Paystand’s board. The firm also believes that Paystand is in the right path in looking to disrupt the accounts receivable industry and since the investment firm shares the same vision as the company, the decision to invest has been made easy.