In the eyes of many individuals, blockchain is commonly linked with cryptocurrency. However, this technology has the capacity to transcend its current role as merely a foundation for crypto transactions. Business-to-business (B2B) blockchain presents an opportunity to address the persistent challenges encountered by enterprises in the realm of sending, receiving, and recording payments.

The shift is evident in the transition of one million businesses to the Paystand platform. With the recent acquisition of Teampay, the company has collectively processed over $10 billion in B2B transactions since its inception. This constitutes around 2% of a market that is forecasted to grow by more than 40% by 2028.

Albert Bodine, the Director of Commercial and Enterprise Payments at Javelin Strategy & Research, has expressed his positive outlook on the potential impact of blockchain: “Blockchain is positioned to transform the B2B rail space by reducing the expenses and lack of transparency associated with traditional payment systems like correspondent banking.”

Fusion of DeFi with Traditional Sectors

While individuals have long benefited from seamless peer-to-peer (P2P) transactions via platforms like Venmo, businesses have grappled with outdated accounts payable (AP) and accounts receivable (AR) processes, which can prove to be ineffective and costly. Paystand aims to introduce the simplicity of P2P transactions into the realm of business payments.

Operating on the Ethereum blockchain, the company’s network facilitates secure and rapid fee-free payments. Jeremy Almond, the CEO of Paystand, sees the inclusion of Teampay as a stride towards “transforming payments, establishing a seamless B2B network, and integrating decentralized finance into conventional sectors.”

Strategic Moves

In an effort to ease the financial strain on B2B clients contending with persistent inflation and high interest rates, Paystand has taken proactive measures beyond the acquisition of Teampay.

The recent integration of full dynamics with Microsoft Dynamics 365 Business Central empowers Paystand to enhance accounts receivable (AR) processes for Dynamics users.

Bodine, in his latest report Movements in Global Payments and Banking: 2024 Edition, underscored the pivotal role of B2B blockchain: “Blockchain’s impact, particularly in cross-border payments, is poised to expand significantly. A new payment landscape is emerging, commencing with cross-border transactions and extending to intercontinental and transoceanic payments.”