How PayStand is Taking Down Paper Checks One B2B Payment at a Time
So many pieces of the purchasing value chain have been automated from CRM and ERP at the customer acquisition phase through order and inventory management. However, things still break down in the collections phase.
With trillions of dollars worth of payments being done by paper checks in the United States, we are still dealing with a surprisingly archaic system.
We recently announced our lead Series A investment PayStand, a B2B payments platform company. We are very excited to be working with Jeremy Almond and the rest of his team to automate the biggest piece of the financial system still using checks: B2B payments. PayStand’s leadership and engineering teams have deep domain knowledge ranging from former leaders in the banking industry to blockchain experts. This mix of “old world” and “new world” expertise, uniquely position PayStand to take on this challenge.
In the United States, JP Morgan reports that, “75 percent of organizations experienced check fraud in 2016. This is an increase from 71 percent in 2015 and a reversal of the declining trend in check fraud since 2010.” There are a number of other issues in the B2B payments space including slow payments and pricing transparency which PayStand are also working to help companies improve.
PayStand is taking this problem head-on by allowing companies to:
- Accept electronic payments (eCheck, eCash, Cards, etc.)
- Automate cash management
- Completely automate accounts receivables and accounts payables
Our investment into PayStand fits with other B2B financial services themes we have invested in throughout our previous funds including companies like Coupa Software (spend management) and Kabbage (working capital management). PayStand is the missing puzzle piece in the BRV ecosystem for better automation and efficiency in the financial sector.
Ultimately, by automating companies’ billing processes, speeding up time to cash, and lowering transaction fees, PayStand is helping corporations better manage their cash flow and gain visibility into the extremely opaque payments industry.
