In 2024, Paystand processed $75 million in revenue from 222 customers. That's the kind of number that gets a fintech investor's attention. The more interesting figure, however, is zero. The company's entire pitch hinges on eliminating transaction fees for B2B payments, a promise it backs with a commercial blockchain network that moves money over bank rails instead of card networks [Paystand]. It's a bet that has attracted $98 million in total funding and propelled the company to a $1 billion-plus valuation after its 2022 merger with Mexico's Yaydoo [TechCrunch, 2021-07-23].
The Zero-Fee Wedge
Paystand's core product is a cloud-based platform that automates accounts receivable and payable, integrating directly with major enterprise resource planning systems like NetSuite and Sage Intacct [Paystand]. The automation piece is table stakes in a crowded market dominated by Tipalti, BILL, and AvidXchange. The wedge is the payment rail. While competitors typically route payments through traditional card networks or ACH, incurring fees of 2-3% or more, Paystand uses its own blockchain-based network to facilitate direct bank-to-bank transfers. The company claims this makes it the only zero-fee B2B payments option embedded within those key ERP systems [Paystand]. For a mid-market manufacturer paying hundreds of suppliers, those saved fees can translate to millions.
Funding a Network Bet
Building a proprietary payments network is capital-intensive, a fact reflected in Paystand's funding history. The company's $50 million Series C in July 2021, led by NewView Capital, was a significant step-up round [TechCrunch, 2021-07-23]. It brought in a heavyweight syndicate including General Catalyst, SoftBank's SB Opportunity Fund, and Gradient Ventures, Google's AI-focused fund. The capital was earmarked for scaling the network and expanding its blockchain infrastructure.
2021 Series C | 50 | M USD
Prior Rounds (Estimated) | 28 | M USD
Total Disclosed Funding | 98 | M USD
The subsequent merger with Yaydoo in 2022 was a strategic acquisition that added scale and geographic reach, officially pushing the combined entity into unicorn territory. The deal also bolstered Paystand's claim of operating "the largest B2B receivables, payables and payments network running on a commercial blockchain," a network that now reportedly sees over 1 million businesses transacting [Paystand].
The Founder's Long Game
CEO Jeremy Almond, a serial entrepreneur, has been steering Paystand since its 2013 founding. His co-founder, Scott Campbell, who previously worked as an engineer at Google and Morgan Stanley, now serves as Head of Solutions and Services, focusing on product strategy [1, 2026]. The team has built a distributed operation with hubs in Santa Cruz, Salt Lake City, and Guadalajara. This longevity is notable in a fintech sector often chasing the next hot trend. Almond's bet has always been structural: that enterprises would eventually balk at the friction and cost of legacy payment systems, creating an opening for a new network built on different technology.
Where the Model Faces Friction
For all its ambition, Paystand's path is not without friction. The company's growth metrics are strong,47% year-over-year with 1,000 enterprise clients reported,but the model faces several headwinds [17, 2026].
- Blockchain as a feature, not a product. The technology is an implementation detail for most finance chiefs. The value is in zero fees and automation, not the underlying ledger. Any perceived complexity or regulatory uncertainty around blockchain could slow adoption in conservative corporate finance departments.
- Competitive response. Incumbents like BILL and Tipalti have massive distribution and are not standing still. They can compete on price or introduce their own fee-light options for large-volume clients, leveraging their existing scale.
- The network effect challenge. A payment network's value increases with each participant. Paystand needs to onboard both payers and receivers to its system to maximize utility, a classic chicken-and-egg problem in payments.
The company's answer to these challenges is its deep ERP integration and a pragmatic focus on the financial outcome, not the tech buzzword. By solving a clear pain point,high fees,within the workflows where finance teams already live, Paystand aims to make adoption a straightforward economic decision.
The Next Twelve Months
With unicorn status secured and a combined network with Yaydoo, the focus now is on scaling that network effect and proving the model's profitability at its current scale. The 2024 revenue figure of $75 million provides a solid base, but the company will be judged on its ability to convert its zero-fee promise into dominant market share within its core ERP ecosystems. Key investors like NewView Capital and Battery Ventures will be watching for that inflection point where network growth becomes self-sustaining.
The $50 million Series C from NewView Capital, General Catalyst, and SoftBank bought the runway to build the network. The Yaydoo merger bought the scale. The question for the next chapter is whether the enterprise market is ready to move a meaningful portion of its trillion-dollar B2B payment volume onto a new rail, one that charges nothing for the ride.
Sources
- [Paystand] About Us - Reinventing B2B Payments | https://www.paystand.com/about
- [TechCrunch, July 2021] Paystand banks $50M to make B2B payments cashless and with no fees | https://techcrunch.com/2021/07/23/paystand-banks-50m-to-make-b2b-payments-cashless-and-with-no-fees/
- [1, 2026] Paystand Company Profile | (Source from research)
- [17, 2026] Paystand Growth Metrics | (Source from research)