Paystand has acquired a New York-based financial software company called Teampay. The purchase goal is for Paystand to continue developing Teampay and using it for its B2B digital payment purposes. It’s one of the biggest acquisitions Paystand has made.
There are reports that Paystand plans to merge Teampay with its B2B services, such as its tools made for online vendors. The long-term goal for Paystand is to combine the services in digital payments, lockbox services, and expense and direct deposit management tools.
What’s Teampay and It’s Used?
Teampay is a payment platform that targets small and medium-sized businesses from various industries. It streamlines the process of making digital payments between companies. It’s, therefore, sometimes described as Venmo for businesses since it tries to match the simplicity of Venmo for personal payments.
It also offers a variety of backend features, such as reporting and analytics, as well as accounting services. The tools are also easy to integrate with tools commonly used in business operations, such as Microsoft Teams, Slack, and QuickBooks. It will be used in a similar fashion after the acquisition.
What’s Paystand?
Paystand is a B2B payment app that started in 2013. It’s one of the pioneers of blockchain technology in this field. It’s worth over $ 1 billion. This is its second acquisition in the field of B2B payments in the last two years. It purchased the payment platform Yaydoo in 2022.
The big difference between the two is the fact that Teampay isn’t based on blockchain, and Yaydoo isn’t. It will showcase how capable PayStand is when it comes to integrating the services of a company that’s not a part of the blockchain and crypto world.
The Expansion of Crypto Adoption
At first, cryptocurrencies were mostly used to make online purchases without providing personal information. However, they didn’t take long to find their way to other industries. Blockchain technology, speed of transfer, and anonymity are features that were useful for a variety of different fields, and the adoption grew from that.
· Bitcoin became widely used in the financial sector, as it was the best currency to store value since it was the least volatile and most trusted.
· Ethereum is mostly used for its smart contract feature, which allows instantaneous payments. Industries such as real estate and supply chain management were the first to accept it since it helped manage the complex maze of transactions in these industries.
· Binance is often used in the gambling industry. Binance coin casinos are safe to use, and players enjoy fast transfers and low fees.
· Ripple and its coin XRP is a crypto widely used by various businesses in the field of payment networks. It settles international transactions in real-time.
The Press Releases
Both Paystand and Teampay have issued statements about the acquisition and their future goals for it.
“To realize our vision of a truly decentralized financial system, it is key that we not only are able to facilitate receiving payments but impact the payable side of those transactions as well,” said Jeremy Almond, Paystand CEO. “In time, we are helping our users, and the industry as a whole, to lessen reliance on antiquated money movement methods.”
“We are well on our way to a DeFi revolution – and it’s already happening without you realizing it,” said Almond. “You’re already a participant because if you do business in the U.S., you have likely worked with a company that makes transactions on the Paystand/Teampay combined network.”
The Future of Cooperation
The transaction was facilitated, in part, by Stifel Venture Banking. Josh Dorsey, Managing Director at Stifel, emphasized the expansive growth opportunities within the B2B fintech sector.
The integration of Teampay into the Paystand ecosystem presents a compelling narrative for businesses aiming to adopt digital-first financial tools that enhance capital efficiency,” remarked Dorsey. “This acquisition represents a pivotal moment for Paystand and Teampay and the entire B2B payments industry. We are thrilled to support and be part of this transformative journey.
The Scope of the Deal
Paystand works with over 800,000 companies with $10bn in transactions. Teampay has a network of about 250.000 companies. This makes them among the biggest players in the world of B2B payments, especially when they combine their forces. Teampay will continue to work under its own brand, which has a lot of gravitas in the industry.
However, the goal of the deal is to go beyond simply combining the two companies. B2B transactions have a lot of overhead in terms of administration and tax issues. The goal will also be for Paystand to provide services in that area.
To Sum Up
Paystand has purchased Teampay, a financial software company from New York. It’s not yet disclosed how much Paystand paid for the acquisition, but it’s part of its long-term goal of becoming a bigger player in crypto and blockchain payments between businesses. Such a move is a part of large adoption of crypto as a payment method between businesses.
Teampay will continue to use its brand, but it will be folded into the larger Paystand team and brought into the blockchain fintech world. A deal such as this one shows the changing attitude about crypto among big businesses.
