Paystand Acquires Teampay: Expanding Network to 1M Businesses

Apr 25, 2024 by Jeremy Almond

Today marks a watershed moment for Paystand and the broader B2B payments landscape. I am thrilled to announce the strategic acquisition of Teampay, an industry-leading provider of spend management software. This significant step forward in our mission not only revolutionizes payments and creates a seamless, fee-free B2B network, but also ushers decentralized finance into traditional spaces. 

Combined, Paystand now services 1,000,000+ companies 

We have been on a mission to create the first real Blockchain-enabled B2B Payment Network, and with this acquisition, we are seeing the actualization of our vision of connecting buyers and suppliers at scale!  With the fusion of Paystand and Teampay we significantly expanded our network, which now touches over one million businesses. If you do business in the US, there is a good chance you or someone you have worked with has transacted on our network! 🤯 

A Game-Changing Combination

We have consistently pushed the boundaries of B2B payment innovation, and the addition of Teampay's capabilities further solidifies our leading position. I am excited to share the reasons behind this transformative transaction.

Our combined platform establishes a powerhouse in financial technology, empowering CFOs to drive profitable behaviors, streamline financial operations, and improve cash flow with a single, unified partner. Paystand brings its robust, blockchain-based smart payments platform that not only automates Accounts Receivable (AR) and reduces Days Sales Outstanding (DSO) but also eliminates transaction fees. Concurrently, Teampay enhances this capability with its sophisticated spend management solutions, automating Accounts Payable (AP) and corporate expense controls, thus effectively eliminating inefficiencies.

Together, we provide a unified financial platform that not only streamlines financial operations but also enhances cash flow. It offers enhanced control over both receivables and payables, delivering a direct ROI through greater efficiency and significant payment savings.

Market View: Bears are for Building 

Despite the slowdown in the tech market and volatility of crypto markets in the last year, we firmly believe in a Decentralized Financial future that represents an entirely new category (“blockchain is the new cloud”) in the way business will be done. And we are committed to catalyzing the acceleration of this shift.  

According to Juniper Research, B2B payments are expected to grow by over 40% by 2028, up from an already massive $89 trillion in 2024. However, the acquisition of Teampay occurs during a period of noticeable stagnation in fintech activity. Last year, the overall tech industry saw layoffs of 191k workers, and global investment in fintech plunged to a five-year low of $113.7 billion—a 42 percent decline from 2022, as reported by KPMG’s recent Pulse of Fintech.

Meanwhile, the best tech companies are not only growing their market share but are also consolidating a broader set of services for their customers. Our Day 1 commitment to Teampay’s customers is clear: they should expect no interruption to their operations, the same great customer service, and anticipate faster product improvements and enhancements.  And on a broader level, Paystand’s strategic move reflects our unwavering commitment to growth and innovation for our business customers, especially at a time when the economy needs it most.

This latest achievement, alongside our strategic partnerships with NetSuite, Sage, Acumatica, Microsoft Dynamics 365 Business Central, as well as our previous acquisition of Yaydoo in 2022, represents the culmination of multiple years of relentless innovation in payment technologies.

Why Expense Management Matter More

Persistent inflation and higher interest rates have made working capital more important, even as it becomes more difficult to come by.  As CFOs hunt for more cash, they increasingly look to technology to achieve greater economies in the mission-critical cash cycle. 

Meta CEO Mark Zuckerberg had dubbed 2023 the “year of efficiency” and we are seeing that trend continue into 2024. Profitable or not — make 2024 the year of cost cuts

 “As of mid-February, more than three-quarters of the S&P 500 had reported fourth-quarter results, with far more earnings beats than revenue beats. The quarter’s earnings, measured by a composite of S&P 500 companies, are on pace to rise nearly 10%. Revenues, however, are up a more modest 3.4%” 

Translation: Right now, profitability is found in cost savings as much as revenue for many companies.

As we integrate Teampay into our operations, it's important to recognize how this acquisition aligns with our broader economic vision and strategic goals for an open commercial finance industry. In the U.S., shockingly, the majority of commercial payments still involve manual and legacy payments from paper checks, ach, and wires, to expensive cards, all of which were invented before the internet. This outdated financial infrastructure presents a prime opportunity for disruptive innovation in the CFO stack and ultimately cost savings for the organization.  New Rails + Automation using Web3 and AI across Accounts Receivable, Accounts Payable, Expense Management, Procurement, and Payments can offer tremendous cash advantages. 

Research supports this shift; Ardent Partners estimates that business could reduce invoice processing costs by up to 80%. While research by Deloitte found that companies with effective working capital management outperform their peers, with 14% higher cash flow from operations and 11% faster cash conversion cycles. 

A REAL B2B Network Effect 

We have long admired the seamlessness of P2P consumer solutions like Venmo and Coinbase, and are committed to enabling similar efficiencies in more complex B2B transactions through Paystand's decentralized Peer-to-Peer Business network.  With the acquisition of Teampay– the bigger picture for a true B2B network comes into focus.  A true network for buyers and sellers can come online into a single open network, creating the largest most scalable blockchain-enabled B2B network in the world.  

Why should you care? 

Because the old way isn’t good enough anymore.  For too long ‘fintech’ hasn’t amounted to much more than a pretty UI built on-top of legacy bank services, which simply mask the antiquated payment infrastructure that burdens businesses with high fees, intermediaries, and delays.  But in a world where money is just software, a B2B payment network built for 2024 should be instant, cost-free, and automatic, with a modern user experience, great financial controls, and natively integrated into your ERPs and Systems of Records —expectations long overdue in the business world. 

The industry must demand better. The DeFi revolution is imminent, and Paystand is committed to lead this transformation.

Conclusion: Leading the Charge in B2B Fintech Innovation

Integrating Teampay's capabilities with our own is a pivotal step toward our goal to reinvent B2B payments. And it reaffirms our mission to decentralize the financial system so businesses can operate with greater autonomy, efficiency, and profitability.

To our customers, partners, employees, investors and the entire fintech community for Thank You for your continued trust and support. The future is bright, and the opportunities ahead are vast. With Teampay now part of Paystand, the potential to transform our industry grows ever more near.

Stay tuned for more updates, because we are not slowing down.