payment post has acquired an expense management software startup team payment to create what the companies describe as a “fee-free B2B digital payments and spending powerhouse.”
The finanacial terms of the contract were not disclosed. Teampay has raised $65 million since its founding in 2016.
The combined company serves more than 1 million businesses running on a commercial blockchain with more than 1 million participants. It has processed more than $10 billion in transactions to date, which it claims represents nearly 2% of annual U.S. business-to-business payments.
“Teampay represents this new class of fintech companies,” Paystand CEO Jeremy Almond told TechCrunch exclusively. “They have products for CFOs to really change the way they can digitize their entire workflow. “It is what I would call a next-generation experience for users and it is a good option for our customers who are going through this great modernization process.”
Paystand will continue to manage the Teampay brand, mainly because it is so well known, he said.
Almond believes fintech companies should learn from consumer finance applications. In the B2B world, the process of sending and receiving funds is complex, slow, and riddled with fees. But consumers can send and receive money to each other through Venmo or CashApp. That’s the kind of features you want Paystand to offer.
Teampay is the blockchain-enabled B2B payments provider’s second acquisition in two years. Purchased payment platform Yaydoo in 2022. At that time, payment postThe valuation was over $1 billion. Paystand has raised $98 million in venture capital since its founding in 2014. Teampay is not on the blockchain, however, now Paystand can bring that functionality to both the accounts receivable and accounts payable side.
“We think it’s a trend of consumerization of the enterprise,” Almonds said. “Now we can offer both parts to 1 million companies.”
Even though fintech has been a hot industry in recent years, the banking industry as a whole has a Old payment rails issue. This leads to higher fees, more middlemen and delays. Almond is a long-time advocate of using decentralized financial infrastructure to solve the payment lanes problem. Paystand uses the Ethereum blockchain as the engine for its Paystand Bank Network, which enables fee-free business-to-business payments.
“Blockchain is the new cloud,” he said. “I know blockchain, bitcoin and decentralized financial networks have their share of problems, but they represent a fundamental departure from the same central banking system that has been in place since the 1930s.”
“Many people think that blockchain or decentralized finance is not ready yet,” he added. “What we’re really proving is that if you create real value for businesses and finance teams, people will use it.”