Paystand: $50M From Investors & Hiring, By Jondi Gumz

COMMUNITY NEWS Paystand: $50M From Investors & Hiring

By Jondi Gumz

On July 26, Paystand, the blockchainenabled payment network for business, announced its $50 million Series C round of funding led by NewView Capital with participation from SoftBank’s Opportunity Fund, King River Capital, Industrious Ventures, and Transform Capital.

This nearly doubles the funding raised in prior rounds for Paystand, which is based at the Enterprise Technology Centre (formerly Borland) in Scotts Valley and is hiring for a total of 38 positions there, and in Jalisco, Mexico, and Draper, Utah.

“Paystand has been quietly rebooting commercial payments since 2013,” said Jazmin Medina of NewView Capital, who is joining the board.

“Payments can now happen instantly and securely as money has become software; yet, most finance teams are still mired in paper, manual processes, and fees,” said Paystand co-founder and CEO Jeremy Almond.

The privately held company reports more than 250,000 companies make payments through its network, resulting in more than $2 billion in payment volume.

The company, without providing numbers, reports 1007% revenue growth in the past three years and 200% increase in monthly network payment volume since raising $20 million for its Series B in 2020.

Paystand reported companies that shifted to its “payments-as-a-Ssice” subscription have more cash to invest in growth, with the average customer over three years realizing: 50% savings on the cost of receivables, 30% — 75% savings on transaction fees, $90,000 saving on labor cost and 62% reduction in days sales outstanding.

While businesses serving consumers see the 2% to 3.5% payment acceptance fee charged by card networks and tech providers as a necessary cost of doing business, midsize and enterprise companies can no longer justify these fees.

In March, the Retail Industry Leaders Association and the National Retail Federation asked to join a federal lawsuit filed in 2005 that led Visa, Mastercard and some big banks to agree to pay $5.54 billion to settle the case. Appeals are ongoing, but the retail industry’s two largest trade groups said the class of merchants was too broad and would prevent retailers who don’t like the settlement terms from opting out and taking legal action on their own. The official court-authorized website at https://www.paymentcardsettlement.com/en reports oral arguments in the appeal have yet to be scheduled and the claim filing deadline not yet set.

The company uses cloud technology and the Ethereum blockchain to power its “Bank Network” — which it describes as “a digital, highly secure payment network with zero fees.”

Digital alternatives to paper processes – Visa and Mastercard – have amassed a value of $875 billion (outstanding stock times share value) on the back of transaction costs, according to Paystand, which sees a “clear need to replace the legacy payment monopolies with a business-first alternative.”

Last year, Mastercard, which estimates commercial payments are a $125 trillion industry, unveiled Track Business Payment Service, a network designed to reduce inquiries suppliers make to buyers regarding payments. n

•••

To get a free demo for your business, see https://www.paystand.com/ get-started?utm_source=businesswire&utm_ medium=referral&utm_campaign=seriesc.

To view job openings, see https://www. paystand.com/careers. Paystand had 38 career job openings posted on its website at press time.

SPECIALIZING IN Residential Repaints & Custom Homes Homeowners Associations Property Managers SUMMER SPECIAL

If we paint your interior and/or exterior by August 31, 2021 we will buy the paint.