In the minds of many, blockchain is synonymous with cryptocurrency. However, the technology can be much more than a framework for crypto transactions. B2B blockchain could serve as a powerful solution to the longstanding challenges businesses encounter in sending, receiving, and recording payments.
This transformative shift is already underway for the one million businesses that have migrated to the Paystand platform. The company recently acquired Teampay, and the two companies collectively processed over $10 billion in B2B transactions since their inceptions. That’s roughly 2% of a market that’s expected to grow by more than 40% by 2028.
“Blockchain is going to be a game-changer,” said Albert Bodine, Director of Commercial and Enterprise Payments at Javelin Strategy & Research. “Sending payments over legacy rails and structures, also known as correspondent banking, is costly and opaque. I’m very bullish on blockchain shedding some of its tie-in with crypto and making a mark on the B2B rail space.”
DeFi in Traditional Spaces
Consumers have long benefited from seamless and accurate payments through peer-to-peer (P2P) platforms like Venmo. Meanwhile, businesses have grappled with outdated accounts payable (AP) and accounts receivable (AR) processes that can be inefficient and expensive. Paystand aims to bring the P2P experience to business payments.
The company’s network is built on the Ethereum blockchain, which allows for reliable and quick payments with no fees. According to Paystand CEO Jeremy Almond, adding Teampay to the fold, “not only revolutionizes payments and creates a seamless, fee-free B2B network, but also ushers decentralized finance into traditional spaces.”
Bold Moves
Paystand hopes to offer relief for B2B customers who have suffered under persistent inflation and high interest rates for some time and are looking to cut costs. To capitalize on that environment, the company has made several bold moves beyond the Teampay acquisition.
It recently bought full dynamics integration with Microsoft Dynamics 365 Business Central, and the initial application for Dynamics users will be Paystand’s ability to streamline AR.
Bodine, who examined the role of B2B blockchain in his recent report, Movements in Global Payments and Banking: 2024 Edition, noted: “As it moves away from crypto, blockchain will be extremely influential. Particularly in cross-border payments, where the situation is ripe for a new way to send payments. Then comes cross-continent and cross-ocean.”